Raymond James Downgrades Best Buy (BBY) to Outperform
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Raymond James analyst Matthew McClintock downgraded Best Buy (NYSE: BBY) from Strong Buy to Outperform with a price target of $120.00 (from $150.00).
The analyst comments "We are downgrading BBY to an Outperform rating from Strong Buy and lowering our price target to $120 from $150 following Best Buy's F4Q21 earnings, management conference call and our follow-up call. We remain firm believers that Best Buy's (BBY) best-in-class fulfillment capabilities, high mix of essential items, and well positioned peer services/GreatCall initiatives should propel it to gain further market share over both the near-term and long-term. Our downgrade reflects 1) current valuation that does not offer sizable multiple re-rating potential in the coming months, and 2) challenging comp sales comparisons (more so than in other buckets of retail). In turn, we believe BBY is increasingly becoming a FY23 (CY22) story as productivity gains from store closures and fulfillment efficiencies along with greater revenue potential in the higher-margin service business start to take center stage. We remain firm believers that innovation in consumer tech and telehealth should accelerate further following COVID-19's impact — enhancing both BBY's products and services inherent value over the long-term."
Shares of Best Buy closed at $102.94 yesterday.
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