UBS Maintains a 'Neutral' on Best Buy (BBY); Decaying Profitability Might Slow in 2H
Tweet
Share
E-mailGet Alerts BBY Hot Sheet
Price: $86.42 +1.25%
Rating Summary:
7 Buy, 25 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
7 Buy, 25 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
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.
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Fiserv (FISV) PT Lowered to $60 at Freedom Broker
- LG Electronics India (LGEL:IN) PT Raised to INR1,815 at ICICI Securities
- Honasa Consumer Ltd (HONASA:IN) PT Raised to INR720 at ICICI Securities
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
UBSSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
