Update shared on29 Aug 2025
Fair value Increased 1.30%Analysts have raised Best Buy’s price target to $78.76, citing optimism over the U.S. digital marketplace launch and expected SKU expansion, though some remain cautious on execution risks and near-term profitability.
Analyst Commentary
- Bullish analysts highlight the significant growth potential from Best Buy's third-party digital marketplace launch, expecting a broad increase in the variety of products and vendors.
- Positive historical precedent cited, noting that Best Buy’s similar marketplace launch in Canada led to a strong uplift in digital sales and profits, which is anticipated to be replicated in the U.S.
- Bullish analysts are surprised by the scale of SKU expansion, with assortment expected to double, indicating major upside for future revenues.
- Bearish analysts express caution, lowering their rating and price target due to concerns over execution risks or slower-than-expected benefits from new initiatives.
- Reduced enthusiasm from bearish analysts also suggests lingering uncertainty regarding near-term profitability or competitiveness despite new marketplace strategies.
What's in the News
- Best Buy reiterated its full fiscal year 2026 guidance, expecting revenue between $41.1 billion and $41.9 billion, and comparable sales to range from -1.0% to 1.0% (Key Developments).
- The company repurchased 929,079 shares for $65 million between May and August 2025, completing 10.68% of its authorized buyback program initiated in March 2022 (Key Developments).
- Best Buy and IKEA U.S. have launched a pilot collaboration in 10 Florida and Texas stores, integrating IKEA shop-in-shop experiences with Best Buy's major appliances and in-store expertise (Key Developments).
- Best Buy was removed from both the Russell 1000 Value-Defensive Index and the Russell 1000 Defensive Index as of June 28, 2025 (Key Developments).
- Chief Digital, Analytics, and Technology Officer Brian Tilzer, who led app development and AI integration, exited the company after joining in 2018 (Bloomberg).
Valuation Changes
Summary of Valuation Changes for Best Buy
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $77.75 to $78.76.
- The Consensus Revenue Growth forecasts for Best Buy has significantly risen from 1.4% per annum to 2.2% per annum.
- The Future P/E for Best Buy has significantly risen from 12.56x to 13.96x.
Disclaimer
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