Best Buy Stock Is Continuing Its Rally: What's Happening?

Best Buy Co Inc (NYSE:BBY) shares are trading higher on Wednesday. The earnings beat has triggered a new round of analyst coverage, extending the momentum from yesterday's post‑earnings rally.

• Best Buy stock is showing upward movement. What’s pushing BBY stock higher?

The Earnings Beat

Best Buy delivered fourth‑quarter earnings of $2.61 per share, topping expectations of $2.47 by a solid margin. Revenue came in at $13.81 billion, just shy of the $13.88 billion estimate, and down $134 million from last year.

Management issued fiscal 2027 earnings guidance of $6.30 to $6.60 per share, slightly below consensus, but paired it with several initiatives that helped reassure investors.

What Piper Sandler Has To Say

Piper Sandler trimmed its price target on Best Buy to $68 from $71 while keeping a Neutral rating. The firm pointed out several factors that could help support the stock in the near term. Best Buy expects tax refund season to lift sales in March and April, which could give the top line a boost this quarter, said Investing.com.

Piper Sandler also highlighted the company's growing advertising and marketplace businesses, which are expected to provide steady margin.

The analysts also noted that Best Buy is actively working to manage rising memory‑chip costs. The midpoint of the company's guidance assumes only a moderate impact from those higher component prices.

Analysts Maintain Steady Outlook

Best Buy continues to see a steady outlook from financial analysts, with recent ratings predominantly maintaining their stance. Citigroup recently maintained its neutral rating and increased its price target from $67.00 to $69.00. Similarly, Evercore ISI Group kept an in-line rating, raising its target from $70.00 to $75.00. Goldman Sachs also maintained its buy rating for the company, albeit with a reduced target of $76.00, down from a previous $93.00.

Other noteworthy actions include BNP Paribas and Morgan Stanley, both of whom retained their earlier ratings. BNP Paribas kept its neutral stance and increased its target from $68.00 to $74.00. In contrast, Morgan Stanley maintained an equal-weight rating but lowered their target price to $72.00 from $76.00, suggesting a slightly more cautious outlook.

BBY Price Action: Best Buy shares were up 2.21% at $67.41 at the time of publication on Wednesday, according to Benzinga Pro.

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