Morgan Stanley Has Lowered Expectations for Best Buy (NYSE:BBY) Stock Price

Best Buy (NYSE:BBY) had its target price lowered by investment analysts at Morgan Stanley from $76.00 to $72.00 in a research report issued on Wednesday,Benzinga reports. The brokerage currently has an “equal weight” rating on the technology retailer’s stock. Morgan Stanley’s target price would indicate a potential upside of 9.99% from the company’s current price.

Several other equities analysts have also recently issued reports on BBY. Wall Street Zen cut Best Buy from a “buy” rating to a “hold” rating in a research note on Saturday, January 10th. DA Davidson reduced their price target on shares of Best Buy from $90.00 to $85.00 and set a “buy” rating on the stock in a research report on Wednesday. Evercore reaffirmed a “buy” rating and issued a $75.00 price target on shares of Best Buy in a report on Wednesday. Wells Fargo & Company dropped their price objective on shares of Best Buy from $75.00 to $70.00 and set an “equal weight” rating on the stock in a research note on Wednesday, February 18th. Finally, The Goldman Sachs Group decreased their target price on Best Buy from $93.00 to $76.00 and set a “buy” rating for the company in a research note on Wednesday. Nine research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $76.20.

Best Buy Stock Down 2.9%

NYSE:BBY opened at $65.46 on Wednesday. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.26 and a current ratio of 1.11. The company has a market capitalization of $13.69 billion, a price-to-earnings ratio of 12.99, a price-to-earnings-growth ratio of 1.68 and a beta of 1.46. Best Buy has a one year low of $54.99 and a one year high of $84.99. The stock has a 50-day simple moving average of $66.70 and a 200 day simple moving average of $72.81.

Best Buy (NYSE:BBY) last released its earnings results on Tuesday, March 3rd. The technology retailer reported $2.61 EPS for the quarter, topping analysts’ consensus estimates of $2.48 by $0.13. The company had revenue of $13.81 billion for the quarter, compared to the consensus estimate of $13.96 billion. Best Buy had a return on equity of 49.17% and a net margin of 2.56%.Best Buy’s quarterly revenue was down 1.0% compared to the same quarter last year. During the same quarter last year, the business posted $2.58 EPS. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. Sell-side analysts predict that Best Buy will post 6.18 EPS for the current fiscal year.

Hedge Funds Weigh In On Best Buy

A number of institutional investors and hedge funds have recently added to or reduced their stakes in BBY. AQR Capital Management LLC raised its stake in Best Buy by 99.8% during the 3rd quarter. AQR Capital Management LLC now owns 6,997,871 shares of the technology retailer’s stock valued at $525,120,000 after acquiring an additional 3,496,254 shares in the last quarter. Norges Bank acquired a new position in shares of Best Buy during the fourth quarter valued at $174,685,000. Schroder Investment Management Group increased its holdings in shares of Best Buy by 378.8% during the fourth quarter. Schroder Investment Management Group now owns 3,096,015 shares of the technology retailer’s stock valued at $207,216,000 after purchasing an additional 2,449,342 shares during the period. KBC Group NV raised its stake in shares of Best Buy by 293.6% during the fourth quarter. KBC Group NV now owns 1,052,805 shares of the technology retailer’s stock valued at $70,464,000 after purchasing an additional 785,294 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. lifted its holdings in Best Buy by 14,865.2% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 771,159 shares of the technology retailer’s stock worth $51,614,000 after purchasing an additional 766,006 shares during the period. 80.96% of the stock is owned by institutional investors.

Key Best Buy News

Here are the key news stories impacting Best Buy this week:

• Positive Sentiment: Q4 earnings beat, stronger margins and digital growth (Ads & Marketplace) drove an earlier rally and underlie the bullish case; management also raised the dividend, signaling cash returns to shareholders. BBY Jumps 7% as Q4 Earnings Beat Signals Strong Strategic Execution
• Positive Sentiment: Several analysts maintained or raised upside views (Evercore raised its PT to $75; BNP Paribas lifted to $74; Guggenheim reaffirmed a $90 PT), providing support that some firms see meaningful upside from current levels. Evercore raises PT to $75
• Positive Sentiment: Market coverage and commentary praised Best Buy’s strategic execution — AI-enabled customer experiences, small-format stores and its higher‑margin digital mix were cited as durable growth levers. BBY Jumps 7% as Q4 Earnings Beat
• Neutral Sentiment: Analysts and commentators praised management’s handling of headwinds — recognition of resilience, but not an immediate catalyst to push consensus materially higher. Best Buy draws praise from analysts
• Neutral Sentiment: UBS and others note FY27 guidance provides a cushion (management framed a steady outlook) — helpful for downside protection but slightly below some street expectations, leaving upside limited until sales momentum re‑accelerates. Fiscal 2027 outlook offers cushion
• Negative Sentiment: Multiple firms trimmed price targets and conservative stances proliferated (Daiwa to $68, Piper to $68, Morgan Stanley to $72, Telsey down to $80), which can trigger profit‑taking after the post‑earnings pop and cap near‑term upside. Daiwa lowers PT to $68
• Negative Sentiment: Near‑term demand risks flagged by Wedbush (memory pricing/shortages) and broader macro/geopolitical pressures on consumer spending are headwinds that could weigh on comparable sales and upward momentum. Best Buy Facing Near-Term Demand Challenges

About Best Buy

Best Buy Co, Inc is a leading North American consumer electronics retailer that sells a broad range of products including computers, mobile phones, televisions and home theater systems, major appliances, smart-home devices, gaming hardware and software, wearables and related accessories. The company operates through a mix of large-format stores, smaller specialty locations and an e-commerce platform, offering national and private-brand merchandise from major consumer-technology manufacturers as well as third-party sellers.

Beyond product retailing, Best Buy provides a suite of services aimed at installation, repair and ongoing technical support.