Analyst Upgrades Best Buy for Achieving 'Difficult Financial Targets'
Wedbush Securities upgraded Best Buy to “neutral” from “underperform,” in a research note to investors Wednesday, saying the retailer has “consistently defied our expectations,” by settling on "the right formula for long-term growth.” Analyst Michael Pachter applauded Best Buy for…
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achieving “difficult financial targets” year after year. Pachter still has concerns about competition from Amazon but said it's poised to deliver on its promises in coming years. The analyst adjusted FY 2020 estimates for revenue of $42.6 billion from $41.9 billion and for 2020 earnings per share to $5.46 from $5.30, reflecting better comparable sales than previously estimated. Best Buy has “thrived despite heavy competition from Amazon,” and the battle will continue, but Best Buy “has firmly established itself as ‘the last man standing’ in consumer electronics retail,” Pachter said, attributing its ability to maintain share “in the face of heavy odds" to a focus on customer service.