Citi has maintained a good posture this time Best Buy Co. Inc. (NYSE: NYSE: ), raised its price target on the stock to $115 from the previous $100, while maintaining a buy rating. The company's analyst highlighted the revised model behind Best Buy's Q2 earnings, which includes increased earnings per share (EPS) estimates for the 2025 and 2026 fiscal years.
Analyst optimism is based on early signs of a positive earnings review for Best Buy, driven by the cycle of demand for replacements and innovations in tablets and computers.
There are also expectations of additional gains as the potential interest rate cut could strengthen the weaker segments of Best Buy's business, especially televisions and electronics.
Despite concerns about the uncertain macroeconomic environment and its impact on consumer spending in the second half of the year, including the important holiday season, Citi believes Best Buy is on track for growth in the coming years.
The revised target price of $115 reflects a multiple of 16 times the new fiscal year 2026 EPS estimates.
Citi's rating also takes into account the current financial year's performance on a retrospective basis based on next year's consensus estimates. The premium used in the valuation is offset by an expected increase in same-store sales (SSS) growth, which is expected to exceed the company's five-year average.
Best Buy Co., Inc. reported impressive second-quarter earnings that beat expectations, prompting several analyst changes. The company's second-quarter earnings per share (EPS) rose 10% to $1.34, beating estimates, and full-year revenue guidance was raised, reflecting a strong performance in the first half of the year.
Among these developments, Best Buy's comparable store sales showed signs of recovery, falling 2.3% in the second quarter, a significant improvement from a 6.1% decline in the first quarter.
KeyBanc reaffirmed Best Buy's Sector Weight rating, expressing optimism about the company's long-term recovery potential. Loop Capital raised its price target on Best Buy to $110, citing a significant acceleration in sales relative to effective cost management.
Piper Sandler raised his price target to $114, acknowledging Best Buy's impressive expansion in EBIT margin and better-than-expected sales. Truist Securities revised its price target to $107, seeing Best Buy beat sales and earnings expectations.
Telsey Advisory Group raised its price target on Best Buy to $115, citing the company's effective cost control and growth in high-income businesses. Finally, Jefferies raised its price target to $116, acknowledging increased demand for consumer electronics replacements and upgrades.
InvestingPro Insights
As Best Buy Co. Inc. (NYSE: BBY) is attracting the attention of analysts and investors with its promising outlook, real-time data from InvestingPro provides more context into the company's financial health and market performance. Best Buy's market capitalization stands at $21.69 billion, indicating its significant presence in the retail industry. With a Price/Earnings (P/E) ratio of 17.29 and an adjusted P/E ratio for the trailing twelve months from Q2 2025 of 15.52, the company shows a balance between its market value and profitability. This is especially important considering Citi's EPS estimates and price target adjustment.
InvestingPro Tips highlights that Best Buy has maintained dividend payments for 22 consecutive years and increased its dividend for 6 consecutive years, demonstrating a commitment to returning value to shareholders. Furthermore, the company's strong returns over various periods, including a total return of 13.65% in the last week and a return of 38.35% in the past year, suggest a strong performance in the stock markets. These metrics, coupled with the fact that Best Buy is trading near its 52-week high, could give investors more confidence in the company's growth trajectory.
For those looking to dig deeper into Best Buy's performance and future prospects, InvestingPro offers a wealth of additional tips—15 in all, including details on the company's profitability, debt levels, and industry positioning. For detailed analysis and special tips, interested readers can visit
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