Wedbush raised its price target for Best Buy to $85 from $75 while maintaining a neutral rating, citing optimism ahead of the consumer electronics retailer’s August 27 earnings release.
The firm’s valuation is based on 11.5 times its fiscal 2027 earnings per share estimate of $7.27, up from $7.16 previously. Best Buy currently trades at a trailing 12-month P/E of 16 and a PEG ratio of 0.5, according to InvestingPro, which assigns a fair value of $96.28.
Best Buy shares have climbed 15% since the company reported first-quarter results, outpacing the S&P 500’s 1.5% gain during the same period. Wedbush expects domestic comparable sales in the second quarter to rise between 2% and 3%, exceeding the consensus estimate of 1.9%. The company’s full-year comparable sales guidance ranges from a decline of 1% to growth of 1%, though Wedbush anticipates performance toward the upper end of that range.
The firm noted positive credit card data points suggesting potential upside, though it cautioned that management changes in the third quarter, rising computing prices, and tariff-related promotional pressures could limit the extent of any upward revision in guidance. Best Buy is scheduled to report second-quarter results before the market opens on August 27.
