Truist Securities lifts Best Buy target to $69, maintains Hold rating

On Thursday, Truist Securities adjusted its price target for Best Buy stock (NYSE:BBY), increasing it from $64.00 to $69.00, while keeping a Hold rating on the shares. The move followed Best Buy’s first-quarter performance, which matched Truist’s estimates. According to InvestingPro data, seven analysts have recently revised their earnings estimates upward for the upcoming period, with analyst targets ranging from $64 to $110 per share. Analysts noted that positive sales in the computing and tablets sector were counterbalanced by weaker sales in more expensive and discretionary categories.

The company’s efforts to mitigate tariffs, including diversifying sourcing and vendor negotiations, have yielded better results than anticipated. Best Buy’s revised projections only reduced their comparable sales forecast by 1 percentage point and trimmed the midpoint earnings per share (EPS) estimate by approximately 3%, using current rates. The company maintains strong financial health, with InvestingPro analysis showing sufficient cash flows to cover interest payments and a moderate debt level.

Despite these favorable outcomes from tariff mitigation, Best Buy’s sales momentum is still considered subdued, with revenue declining 4.43% over the last twelve months. Analysts from Truist Securities highlighted that this could be the third consecutive year of nearly unchanged earnings for the retailer. However, Best Buy maintains a strong market position, with a significant 5.31% dividend yield and a 7-year track record of consecutive dividend increases, according to InvestingPro analysis. Given these factors, the firm’s stance on Best Buy stock remains neutral, with the updated price target reflecting a balanced risk/reward scenario.

Best Buy has been navigating a challenging retail environment, with consumer spending patterns shifting and competition in the electronics market remaining intense. The company’s efforts to adjust its business strategy in light of tariffs and changing market dynamics are being closely watched by investors and industry analysts alike.

The updated price target from Truist Securities suggests a modest expectation of Best Buy’s stock performance in the near term. Investors and market participants will continue to monitor the company’s financial health and strategic initiatives as it strives to adapt and grow in a rapidly evolving retail landscape.

In other recent news, Best Buy reported its first-quarter earnings for 2025, exceeding analyst expectations with an earnings per share (EPS) of $1.15, surpassing the forecast of $1.07. The company’s revenue reached $8.8 billion, slightly above the anticipated $8.75 billion. Despite this earnings beat, Best Buy’s stock experienced a decline, reflecting investor concerns over broader market trends and future guidance. Truist Securities maintained a Hold rating on Best Buy shares with a price target of $64, noting that the company’s performance aligned with expectations, despite a 0.7% decline in domestic comparable sales. Analysts highlighted growth in categories such as computing and mobile phones, although these were offset by declines in other areas. Best Buy’s management has been actively addressing tariff impacts, which are projected to be less severe than initially estimated. The company also provided a full-year comparable sales guidance, projecting a range from a 1% decline to a 1% increase, with strategic initiatives focusing on digital experiences and marketplace expansions.

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