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Investing.com - Truist Securities raised its price target on Best Buy (NYSE:BBY) to $72.00 from $69.00 on Friday, while maintaining a Hold rating on the electronics retailer’s stock. According to InvestingPro data, analyst targets for BBY range from $60 to $94, with the stock currently trading at $72.66.
The price target increase follows Best Buy’s second-quarter performance, which exceeded Truist’s estimates primarily due to strong Nintendo Switch 2 sales. Entertainment sales surged 38%, contributing over 200 basis points to comparable sales for Best Buy’s domestic operations. The company maintains strong financials with a healthy 22.5% gross profit margin and has consistently paid dividends for 23 consecutive years, currently offering a 5.23% yield.
Truist expects some of this momentum to continue into the second half of the year, helping to offset ongoing weakness in other key categories including televisions and appliances. The impact from tariffs remains broadly in line with previous forecasts, according to the firm’s analysis.
The firm noted that the spike in entertainment sales demonstrates the effectiveness of Best Buy’s business model when significant vendor innovation occurs, but indicated more such innovation would be needed to drive sustainable growth for the retailer.
Despite the improved outlook reflected in the higher price target, Truist maintained its Hold rating on Best Buy shares, suggesting limited upside potential beyond the new target.
In other recent news, Best Buy Co., Inc. reported impressive second-quarter earnings results, surpassing expectations with earnings per share (EPS) of $1.28 compared to the forecasted $1.22. The company’s revenue also exceeded projections, reaching $9.4 billion against an anticipated $9.23 billion. Best Buy’s comparable sales grew by 1.6% in Q2, marking its strongest performance since the third quarter of 2021, driven by strong sales of Nintendo Switch 2 and laptops. Analysts from Evercore ISI have adjusted their price target for Best Buy to $77, citing continued sales momentum and potential earnings growth by 2026.
Goldman Sachs also raised its price target on Best Buy to $95, maintaining a Buy rating, and highlighted the company’s strong sales performance. Piper Sandler maintained a Neutral rating with a price target of $75, while KeyBanc Capital Markets kept a Sector Weight rating, noting the positive comparable sales growth. Despite a slight miss on gross margin, Best Buy reiterated its fiscal year 2026 guidance, indicating it is trending toward the high end of its sales guidance range of -1% to 1%. These developments reflect a positive outlook from analysts and continued investor interest in the company.
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