Retail Media Momentum And E-Commerce Expansion Will Shape Future Results

Best Buy’s analyst price target increased modestly, rising by $1 to $95. Analysts cited renewed confidence in retail media expansion, alternative profit streams, and robust recent earnings performance to support this adjustment.

Analyst Commentary

Recent street research highlights a mix of optimism and caution among analysts evaluating Best Buy’s prospects. The company’s improved earnings execution, margin drivers, and product cycle momentum are praised, while some ongoing risks and reservations are also noted. Below is a summary of the most prominent bullish and bearish takeaways from the coverage.

• Bullish analysts are encouraged by Best Buy’s retail media organization, pointing to new leadership and an influx of media sales executives as positive drivers for expanding alternative profit streams.
• Expectations are rising for Best Buy Ads to contribute to annual gross margin expansion, which counters more conservative investor forecasts of margin contraction.
• The company’s recent earnings, including stronger-than-expected comparable sales and EPS, have reinforced confidence in Best Buy's operational execution and the resilience of its business model.
• Investments in e-commerce infrastructure, as well as adaptability in launching new initiatives, are viewed as key factors supporting long-term growth and the potential for earnings estimates to exceed consensus projections.

• Bearish analysts note that despite solid quarterly results, the company has declined to formally increase its outlook, which reflects a cautious stance toward the remainder of the year.
• Concerns have been raised about continued mix pressure, with lower-margin categories such as gaming and computing experiencing outsized growth. This may potentially weigh on profitability.
• Tariff pressures and the possibility that increased promotions may be needed in the second half of the year are cited as ongoing risks that could impact margins and consumer demand.

What's in the News

• Hohem’s iSteady M7, V3, and V3 Ultra smartphone stabilizers are now available for purchase on BestBuy.com. In-store pickup and display units will launch in late October 2025. This partnership marks a significant step in Hohem’s North American expansion and enhances Best Buy’s selection of intelligent imaging technology. (Key Developments)
• Best Buy is expanding its digital marketplace, offering ten times the number of products for the holiday shopping season. This includes new brands, gaming consoles, appliances, wearables, and XXL TVs, along with early 48-Hour Flash Sale discounts. (Key Developments)
• The company repurchased nearly 970,000 shares between May and August 2025. In total, it has acquired over 23.5 million shares since March 2022 for $1.88 billion. (Key Developments)
• Best Buy has reiterated its earnings guidance for Fiscal Year 2026, projecting revenue between $41.1 and $41.9 billion with comparable sales ranging from negative 1 percent to positive 1 percent. (Key Developments)
• Best Buy and IKEA U.S. have launched a pilot program that combines IKEA furnishings with Best Buy appliances in select stores in Florida and Texas. The program offers customers collaborative planning and design experiences. (Key Developments)

Valuation Changes

• The Fair Value estimate has risen slightly, increasing from $79.76 to $80.71.
• The Discount Rate has decreased marginally, moving from 8.78 percent to 8.71 percent.
• The Revenue Growth projection has declined, from 2.26 percent previously to 2.04 percent now.
• The Net Profit Margin has edged up, rising from 3.31 percent to 3.33 percent.
• The Future P/E ratio has increased modestly, from 13.67x to 14.02x.