Analyst Maintains 'Neutral' Rating on Best Buy, Citing Virus-Related Supply Chain Disruptions
Best Buy has done an “admirable job mitigating the impact of tariffs,” Wedbush Securities analyst Michael Pachter wrote investors Feb. 27, but pressure from tariffs will “swiftly shift to pressure from supply chain disruption,” at least through the first half…
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of the year. Supply chain problems due to the coronavirus are an “elevated concern” for the retailer, with the full impact of disruptions currently unknown, Pachter said. About 60% of Best Buy’s cost of goods sold originated in China last year, “but should be closer to 40%” in 2020, Pachter said, “still highly exposed in our view.”