Best Buy Gets A Downgrade From Piper Sandler, Shares Drop Premarket

Piper Sandler downgraded Best Buy Co. (BBY) shares to 'Neutral' from 'Overweight' on Monday, citing a lack of near-term catalyst.

The research firm also lowered the price target to $75 from $82. The new target signals an upside of 5.3%. BBY shares dropped 1.3% in premarket trading on Monday, following the downgrade.

According to a report on Investing.com, Piper Sandler stated that it sees no catalyst that would meaningfully drive growth in comparable sales or earnings per share in the next few quarters.

The research firm also flagged longer-term competitive concerns in Best Buy's key categories, such as appliances and TVs.

Of the 29 analysts covering the stock, 17 rate it ‘hold,’ 11 rate it ‘buy’ or higher, and one rates it ‘strong sell,’ according to Koyfin data. Their average price target is $79.28.

On Stocktwits, the retail sentiment for the company was 'neutral,' unchanged from a month ago. BBY shares are down nearly 17% year-to-date.

A user called it "a tariff hostage stock," and pointed out the neckline pattern on its charts.

The downgrade comes as the electronics retailer navigates a weak market. Best Buy lowered its revenue and profit guidance for the full year in May, citing the impact of U.S. tariffs on its financial performance and demand for its products.

More recently, Bloomberg reported that the company's chief digital, analytics, and technology officer, Brian Tilzer, who oversaw Best Buy's apps and artificial intelligence development, is leaving.

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