UBS Maintains a 'Neutral' on Best Buy (BBY); Decaying Profitability Might Slow in 2H
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Price: $26.29 +2.50%
Rating Summary:
12 Buy, 9 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
12 Buy, 9 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade BBY Now!
UBS maintains a 'Neutral' on Best Buy (NYSE: BBY) price target of $19.00 (from $20.00).
Analyst, Michael Lasser, said, "Putting aside the melodramatics of the buyout proposal & the CEO transition, two facts stood out from 2Q. First, BBY’s domestic gross profit dollar profile took an accelerated step down this quarter by declining 6.4%. There were some unique dynamics that impacted the rate over the last few months, so perhaps the decay will slow. The other standout was the performance of the international business, which lost -$50 mm."
"From a practical perspective, a lot of bad news was brought to bear in 2Q. Incremental data points are either liable to be less bad or suggest that BBY could be closer to a deal w/ Schulze. We remain skeptical of his ability to finance a transaction, but we have little doubt about his tenacity. BBY’s current mkt cap of $6 b is easier to chew on."
FY13 EPS Estimate lowered from $3.50 to $3.05 and FY14 from $3.56 to $2.80.
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 $17.91 yesterday, with a 52 week range of $16.25-$28.53.
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Analyst, Michael Lasser, said, "Putting aside the melodramatics of the buyout proposal & the CEO transition, two facts stood out from 2Q. First, BBY’s domestic gross profit dollar profile took an accelerated step down this quarter by declining 6.4%. There were some unique dynamics that impacted the rate over the last few months, so perhaps the decay will slow. The other standout was the performance of the international business, which lost -$50 mm."
"From a practical perspective, a lot of bad news was brought to bear in 2Q. Incremental data points are either liable to be less bad or suggest that BBY could be closer to a deal w/ Schulze. We remain skeptical of his ability to finance a transaction, but we have little doubt about his tenacity. BBY’s current mkt cap of $6 b is easier to chew on."
FY13 EPS Estimate lowered from $3.50 to $3.05 and FY14 from $3.56 to $2.80.
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 $17.91 yesterday, with a 52 week range of $16.25-$28.53.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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