DA Davidson Cuts Best Buy Price Target to $78 from $85
DA Davidson’s Michael Baker cut his Best Buy price target to $78 from $85 while maintaining a Buy rating and trimmed fiscal 2026–27 EPS estimates after reviewing Q4 results. Best Buy reported $13.8 billion revenue, 5% operating margin and $2.61 adjusted EPS, with comparable sales down 0.8%.
1. Analyst Revises Price Target
Michael Baker of DA Davidson lowered his Best Buy price target to $78 from $85 and maintained a Buy rating, trimming fiscal 2026 and 2027 EPS estimates after reviewing the company’s fourth-quarter results and updated guidance.
2. Q4 Financial Performance
Best Buy generated $13.8 billion in revenue for fiscal Q4 2026, achieved a 5% adjusted operating margin and delivered $2.61 in adjusted EPS, while comparable sales declined 0.8% year-over-year but remained within guidance, indicating stable market share.
3. Strategic Initiatives and Category Trends
The company expanded its digital marketplace and advertising initiatives, nearly doubling partner count and broadening product offerings, and saw momentum in computing, mobile and AI glasses segments, offset by weaker home theater and appliance sales, while returning $1.1 billion to shareholders.