Best Buy’s Comp Sales grew sales after 12 quarters, tariff issues exacerbated Outlook, Best Buy Co (NYSE: BBY)

Best Buy Company BBY The company reported optimistic fourth-quarter sales, and shares rose on Wednesday.

The result is in an exciting income season. Here are some key analyst takeaways.

Analyst Kate McShane Reiterate the buy rating while reducing the target target from $106 to $101.

McShane said in a report that Best Buy results were mostly expected fourth-quarter results. She added that comparable sales rose 0.5% year-on-year, surpassing the consensus estimate of 1.3%, the first enterprise-business competition since the third quarter of 2021.

Analysts say the company appears to have the ability to take advantage of “the increase in demand for replacement cycles and innovation-driven purchases (even with price hikes due to tariffs). She further wrote: “In addition, the company’s investments in alternative revenue streams such as markets and Best Buy Advertising will gradually reduce profits and sales over time.”

Analyst Joseph Feldman Reiterated the outperforming market rating while reducing the target from $110 to $100.

Feldman said Best Buy reported earnings per share of $2.58, surpassing the consensus of $2.40 per share, driven primarily by a higher than expected 0.5%. He added that this is the first head-on competition since the third quarter of 2021, reflecting the company’s holiday promotions, the return of doorsteps, and the impact of product innovation and the effectiveness of the replacement cycle.

Analysts say Best Buy faces “significant new risks” due to new Trump administration tariffs as the company acquires about 60% of its products from China and about 20% comes from Mexico.

View other analyst inventory ratings.

Analyst Seth Basham Maintain a neutral rating while cutting the target from $90 to $83.

Basham said Best Buy had COMP of 0.5% and profit margin was 4.9%. He added that despite the company’s profit margins signed up for seven basis points year-on-year, their consensus is higher than 4.7%.

Analysts say management sales are between $41.4 billion and $42.2 billion in 2025, with COMPS ranging from flat to +2%, with up to 10 stores closing. He further wrote that the company expects “innovation/product launch cycles, as well as Windows 10 support to be shut down due to natural upgrades and replacement cycles,” he further wrote.

Analyst Bobby Griffin Reaffirm the rating of stocks’ superiority over the outperformance.

Griffin said the payment for the fourth quarter was driven by “computer, tablet and service growth, 10% increase in laptop sales.” He added that gross margin expanded to 20.9%, surpassing expectations, “driven by the higher profitability of the service, especially from paid membership and attached warranty sales.”

“Based on the upcoming October 10-time Windows support cycle and AI-powered computing innovations, both could help maintain demand for high-end laptops in the second half of FY26,” the company said.

BBY Price Action: When it was published Wednesday, Best Buy’s shares rose 1.37% to $76.23.

Read more:
• The tariffs cast a shadow on Best Buy, with the goal: Is this a buying opportunity?

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