Morgan Stanley Cuts Price Target on Best Buy (BBY) Following 2Q16 EPS Beat

Morgan Stanley maintained an Overweight rating on Best Buy (NYSE: BBY), and cut the price target to $40.00 (from $43.00), following the company's 2Q16 earnings results. BBY delivered Q2 EPS of $0.49, which was 15 cents above consensus. Analyst Simeon Gutman said that the strength of the quarter increases the likelihood that the business could comp positively in the 2H16 against tough compares.

Gutman commented, "Our key takeaway from BBY's better Q2 results is that the quarter's topline strength increases the likelihood that the business could comp positively in 2H against tough compares. Even modestly positive comps should enable the achievement of consensus estimates in the back half of the year. A slightly weaker comp in Q2 (albeit positive), may have caused 2H comp estimates to come down (to flat to slightly negative). At this stage, this seems less likely."

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 $32.95 yesterday.

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