UBS Maintains a 'Neutral' on Best Buy (BBY); Navigating Through Complexity–2Q Preview

UBS maintains a 'Neutral' on Best Buy (NYSE: BBY) price target lowered from $34 to $26.

UBS analyst says, "Our checks and a slew of data points indicate that conditions have been tough in the CE retail space over the last few months. As a result of these circumstances and the broader macro uncertainty, we think BBY will take this chance to lower the bar for 2H’12 or at least point to the low end of its previously provided guidance."

"We are lowering our 2Q’12 EPS estimate to $0.49 (vs. the consensus estimate of $0.54) driven by -4.5% domestic comp decline. Also, we are lowering our FY’12 EPS est to $3.40 (versus the consensus estimate of $3.48). Note that our FY’12 EPS est includes a $0.17 benefit from share repurchases. Excluding this activity, our est would be $3.23, which is lower than BBY’s guidance of $3.30 to $3.55."

For more ratings news on Best Buy click here and for the rating history of Best Buy click here.

Shares of Best Buy closed at $23.30 yesterday.

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