DA Davidson Reduces Best Buy (BBY) Price Target Following Earnings Review

Best Buy Co., Inc. (NYSE:BBY) is included among the 15 Best High Dividend Stocks to Invest in Under $100.

On March 4, Michael Baker of DA Davidson lowered the firm’s price recommendation on Best Buy Co., Inc. (NYSE:BBY) to $78 from $85. The analyst maintained a Buy rating on the shares. Baker said the firm reduced its fiscal 2026 and fiscal 2027 EPS estimates after reviewing the company’s fourth-quarter results and its guidance for 2026.

During the fiscal fourth-quarter 2026 earnings call, CEO Corie Barry said Best Buy generated revenue of $13.8 billion. The company reported an adjusted operating income rate of 5% and adjusted earnings per share of $2.61. She noted that both profit measures came in slightly higher than the previous year.

Barry said comparable sales declined 0.8% from a year earlier. She added that the result still fell within the company’s guidance range. According to Barry, internal data suggested Best Buy’s market share was at least stable. In her view, the numbers pointed more toward softer consumer demand for electronics during the holiday quarter than a loss of share. She highlighted growth in computing and mobile phones. Emerging product categories also showed momentum, including AI glasses, 3D printers, and PC gaming handheld devices.

At the same time, she pointed to weaker performance in home theater and appliance sales. Barry also said the company continued to make progress with its advertising and digital marketplace initiatives. Those efforts supported gross profit during the quarter. She noted that the marketplace launch attracted more vendors than expected and expanded the number of products available on the platform. The number of advertising partners also nearly doubled compared with the previous year. Barry added that Best Buy returned $1.1 billion to shareholders through dividends and share repurchases.

Best Buy Co., Inc. (NYSE:BBY) focuses on personalizing and humanizing technology solutions. The company operates through two segments: Domestic and International.

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