UBS Reiterates Neutral On Best Buy Co Inc (BBY) Following 1Q:17 Results, CFO Departure
Best Buy Co Inc (NYSE:BBY) shareholders have seen their shares suffer today, after the consumer electronics giant warned of a slight hit coming in the second quarter and announced the departure of chief financial officer Sharon McCollam, who helped revamp the company’s operations and cut costs. The position will be filled by Corie Barry, Chief Strategic Growth Officer.
In reaction, UBS analyst Michael Lasser reiterated a Neutral rating on shares of Best Buy, with a price target of $33, which implies an upside of 8% from current levels.
Lasser wrote, “Sharon has done an admirable job during her tenure at BBY and we think her actions will provide benefits for the co. long after she is gone. As far as its outlook, BBY still expects ~flat sales & non-GAAP OI in FY’17. For 2Q’17, BBY guided to $8.35-$8.45 b in Enterprise sales (cons. $8.31 b), with a flat domestic comp (cons. – 1.6%) & an international sales decline of 5-10%. Further, it expects 2Q EPS of $0.38- $0.42 (cons. $0.50) based on a 325 mm shares. Its EPS will be impacted by lapping a profit sharing benefit (-$0.03), further services pricing investment (-$0.06), and inventory issues in DI (-$0.03-$0.04), partially offset by the share repos (+$0.04).”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Lasser has a yearly average return of 7.5% and a 58.8% success rate. Lasser has a -38.7% average return when recommending BBY, and is ranked #301 out of 3929 analysts.