Best Buy's (BBY) fiscal 2027 guidance, which came in slightly below consensus, offers downside protection if trends soften, UBS Securities said in a note emailed Wednesday.
The consumer electronics retailer forecasts fiscal 2027 earnings per share of $6.30 to $6.60, compared with consensus estimates of $6.63. UBS said the midpoint is less than 3% below pre-earnings expectations, indicating the company avoided a significant reset despite a tough consumer environment.
Best Buy expects 1% comparable sales growth in fiscal Q1 and 3.9% adjusted operating margins, both near consensus, UBS said, adding that the outlook signals stabilization and builds in a cushion rather than assuming a sharp rebound in demand.
Best Buy estimates fiscal 2027 comparable sales growth ranging from down 1% to up 1%, below consensus expectations for about 1.5% growth, with adjusted operating margins of 4.3% to 4.4%, largely in line with estimates, UBS added.
The firm maintained its buy rating on the stock with a price target of $85.
Shares of the company were up 2.1% in recent Wednesday trading.
Price: 67.35, Change: +1.40, Percent Change: +2.12
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