Best Buy (BBY): Earnings Preview, Challenges Ahead - Wedbush

August 18, 2016 8:17 AM EDT
Get Alerts BBY Hot Sheet
Price: $43.63 -2.55%

Rating Summary:
    7 Buy, 17 Hold, 5 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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Wedbush analyst, Michael Pachter, reiterated his Underperform rating on shares of Best Buy (NYSE: BBY) ahead of Q2:17 on Tuesday, August 23. The analyst expects declining sales which should present a more formidable headwind going forward along with elusive cost cuts. Management has done an impressive job controlling promotional activity to offset weak traffic, and continuing share repurchases have boosted earnings. However, the analyst expects a return to persistent comp declines due to a lack of compelling new products, and believes cost cuts are approaching a limit, leaving Best Buy few options to drive EPS growth in FY:17 and beyond.

No change to the price target of $20.50

For an analyst ratings summary and ratings history on Best Buy click here. For more ratings news on Best Buy click here.

Shares of Best Buy closed at $33.30 yesterday.

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