Wedbush Cautious on Best Buy (BBY) Ahead of Q4 Earnings

Best Buy Co. Inc. (NYSE:BBY) is one of the 13 Deep Value Stocks to Buy Right Now.

Wedbush, on February 24, reduced its target price on Best Buy by 12.5% to $70 (from $80), while retaining its Neutral call on the stock. The firm believes that investor expectations for Best Buy are low, due to weak holiday sales and lingering memory supply shortages, with no clear catalysts to the upside in sight.

This target price update comes ahead of the company’s Q4 FY 2026 results (scheduled for March 3), which the firm expects to disappoint due to weak holiday sales in the consumer electronics industry, despite elevated discounting. US retail sales data for December, which was released by the US Commerce Department on February 10, backs up this story. The data release showed retail sales unexpectedly flat in December, as households scaled back purchases of big-ticket items.

Wedbush was even more worried about management’s forward guidance for FY 2027, due to the uncertainty surrounding the lingering memory supply shortages, which would translate to lower PC and consumer electronics demand throughout at least the year. The firm is now expecting same-store sales to decline in the low single digits for FY 2027, vs. its previous expectation of modest growth.

Best Buy Co. Inc. (NYSE:BBY) provides consumer technology products and services in the US, Canada, Europe, China, Mexico, and Turkey. The company is based in Richfield, Minnesota, and was founded in 1966 by Richard M. Schulze.

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