Morgan Stanley Issues Pessimistic Forecast for Best Buy (NYSE:BBY) Stock Price

Best Buy (NYSE:BBY) had its target price lowered by investment analysts at Morgan Stanley from $76.00 to $72.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage presently has an “equal weight” rating on the technology retailer’s stock. Morgan Stanley’s price objective points to a potential upside of 7.05% from the stock’s current price.

BBY has been the topic of several other reports. Guggenheim restated a “buy” rating and set a $90.00 price target on shares of Best Buy in a report on Wednesday. Telsey Advisory Group reduced their price objective on Best Buy from $95.00 to $80.00 and set an “outperform” rating for the company in a research report on Wednesday. Citigroup lowered their target price on Best Buy from $82.00 to $67.00 and set a “neutral” rating on the stock in a research note on Friday, February 13th. KeyCorp reaffirmed a “sector weight” rating on shares of Best Buy in a research report on Wednesday. Finally, Piper Sandler reiterated a “buy” rating on shares of Best Buy in a report on Wednesday. Nine analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $77.05.

Best Buy Stock Up 2.0%

NYSE:BBY traded up $1.31 on Wednesday, hitting $67.26. 2,291,468 shares of the company’s stock traded hands, compared to its average volume of 4,834,692. The company has a market cap of $14.09 billion, a PE ratio of 22.27, a price-to-earnings-growth ratio of 1.47 and a beta of 1.46. Best Buy has a 1 year low of $54.99 and a 1 year high of $84.99. The company has a current ratio of 1.05, a quick ratio of 0.26 and a debt-to-equity ratio of 0.44. The firm has a 50-day moving average price of $66.83 and a 200-day moving average price of $72.90.

Best Buy (NYSE:BBY) last posted its quarterly earnings results on Tuesday, March 3rd. The technology retailer reported $2.61 EPS for the quarter, topping the consensus estimate of $2.48 by $0.13. Best Buy had a net margin of 1.54% and a return on equity of 50.02%. The business had revenue of $13.81 billion during the quarter, compared to analysts’ expectations of $13.96 billion. During the same period last year, the company posted $2.58 earnings per share. The firm’s quarterly revenue was down 1.0% compared to the same quarter last year. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. Equities analysts anticipate that Best Buy will post 6.18 EPS for the current fiscal year.

Institutional Trading of Best Buy

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Sage Private Wealth Group LLC increased its position in Best Buy by 3.1% in the 3rd quarter. Sage Private Wealth Group LLC now owns 4,109 shares of the technology retailer’s stock valued at $311,000 after acquiring an additional 123 shares in the last quarter. LVW Advisors LLC increased its position in shares of Best Buy by 3.9% during the third quarter. LVW Advisors LLC now owns 3,633 shares of the technology retailer’s stock worth $275,000 after acquiring an additional 137 shares in the last quarter. Harbor Capital Advisors Inc. raised its position in Best Buy by 69.3% in the 3rd quarter. Harbor Capital Advisors Inc. now owns 337 shares of the technology retailer’s stock valued at $25,000 after buying an additional 138 shares during the last quarter. Huntington National Bank lifted its position in Best Buy by 12.0% during the 3rd quarter. Huntington National Bank now owns 1,298 shares of the technology retailer’s stock worth $98,000 after buying an additional 139 shares in the last quarter. Finally, Panagora Asset Management Inc. raised its stake in shares of Best Buy by 1.5% during the 2nd quarter. Panagora Asset Management Inc. now owns 9,513 shares of the technology retailer’s stock worth $639,000 after purchasing an additional 144 shares in the last quarter. Institutional investors and hedge funds own 80.96% of the company’s stock.

More Best Buy News

Here are the key news stories impacting Best Buy this week:

• Positive Sentiment: Q4 earnings beat and margin progress: Best Buy reported stronger-than-expected profit for the holiday quarter helped by higher-margin businesses (Ads and Marketplace) and a leaner cost structure, which investors rewarded. The report highlighted improved profitability despite softer comparable sales. BBY Jumps 7% as Q4 Earnings Beat Signals Strong Strategic Execution
• Positive Sentiment: Dividend increase and strategic initiatives: Management raised the dividend and emphasized digital initiatives (small-format stores, AI-driven experiences) that support higher-margin mix and shareholder returns. Best Buy Earnings Beat Highlights Shift To Higher Margin Digital Model
• Neutral Sentiment: Macro headwinds versus stock-specific strength: Broad US markets were pressured by geopolitical tensions and oil-price moves, but Best Buy outperformed those trends because of the earnings beat and margin story. This suggests stock action is driven more by company execution than the market’s headline risk. US Equity Markets Lower as War Against Iran Intensifies
• Neutral Sentiment: Mixed analyst responses: Several firms adjusted price targets — some cut targets but kept buy ratings while others raised theirs — reflecting disagreement on how sustainably Best Buy can convert margin gains into top-line growth. This creates mixed near-term analyst pressure. Goldman Sachs Adjusts Price Target on Best Buy
• Negative Sentiment: Guidance and sales softness: Management issued fiscal 2027 guidance (EPS and revenue ranges) that was below consensus and warned of weaker consumer demand for big-ticket items, which tempers the upside and explains some analyst caution. Best Buy forecasts annual sales below estimates
• Negative Sentiment: Sell-side skepticism and downgrade arguments: Some analysts and write-ups flagged limited differentiation, e‑commerce vulnerability, and a lack of clear catalysts beyond yield-focused returns, leading at least one sell-side downgrade. That narrative could cap longer-term multiple expansion. Best Buy: No Compelling Reason To Own (Rating Downgrade)

Best Buy Company Profile

Best Buy Co, Inc is a leading North American consumer electronics retailer that sells a broad range of products including computers, mobile phones, televisions and home theater systems, major appliances, smart-home devices, gaming hardware and software, wearables and related accessories. The company operates through a mix of large-format stores, smaller specialty locations and an e-commerce platform, offering national and private-brand merchandise from major consumer-technology manufacturers as well as third-party sellers.

Beyond product retailing, Best Buy provides a suite of services aimed at installation, repair and ongoing technical support.