August 24, 2020
Shares of Best Buy inched higher in early trading Aug. 24 as the nation’s largest consumer electronics retailer is set to release second-quarter financial results on Aug. 25.
Best Buy, which is one of the largest home entertainment packaged-media retailers, saw sales of DVDs, Blu-ray Disc, 4K Ultra HD Blu-ray movies, music CDs and related media increase 9.5% in the first quarter, ended May 21, compared with the previous-year period.
Best Buy continues to fill the need for stay-at-home consumers, in addition to remote-schooled children and college students.
Wall Street firm Raymond James upped Best Buy’s price target to a near market-high of $135 from $100. A price target is Wall Street’s estimation of the future price of a company’s security, which includes investment products, stocks and bonds.
“We believe in [Best Buy’s] fulfillment capabilities, high mix of essential items, and well positioned peer services should propel [chain] to gain further market share during the COVID-19 induced retail shakeout,” analyst Matthew McClintock wrote in a note.
McClintock believes Best Buy has ample liquidity to aggressively make investments in the near-term to drive future market share opportunities over the long-term.
Wedbush Securities media analyst Michael Pachter Best Buy’s management team has found innovative ways to exploit the favorable trends within the current work-from-home/learn-from-
“We applaud Best Buy for its many accomplishments, not least of which is achieving the difficult financial targets it has set for itself year after year,” Pachter wrote in a note earlier this year. “We now have more faith in its ability to successfully navigate this uncertain period.”