Best Buy (BBY) PT Lowered to $60 at UBS; Reiterates Neutral
UBS lowered its price target on Best Buy (NYSE: BBY) to $60.00 (from $62.00) while maintaining a Neutral rating following the company's 2Q. Domestic comp of 5.4% beat the consensus estimate of 2.0%. The company saw gains across most major product categories with the notable exception of televisions.
While BBY reported a respectable overall OM that was up 21 bps YoY, this expansion was more modest than what the market has become accustomed to. Its domestic GM was flat YoY and its SG&A levered by 20 bps.