Best Buy Sees Comeback with New Product Launches and Diversified Sourcing Strategies

Best Buy is expected to return to growth in the second half of 2025, according to analyst Joseph Feldman of Telsey Advisory Group. Feldman maintains an Outperform rating and a $90 price forecast for the company. He believes new product launches, including the Nintendo Switch 2, will support second-quarter sales. However, macro headwinds will keep topline and EPS lower year-over-year. Feldman projects Q2 2025 EPS of $1.21 and a 1.4% sales decline to $9.2 billion. He also forecasts an operating margin contraction of ~40 basis points to 3.7%.

Best Buy Co. (BBY) is poised for a potential comeback in the second half of 2025, according to analyst Joseph Feldman of Telsey Advisory Group. Feldman maintains an Outperform rating and a $90 price forecast for the company. He believes new product launches, including the Nintendo Switch 2, will support second-quarter sales. However, macro headwinds are expected to keep topline and EPS lower year-over-year. Feldman projects Q2 2025 EPS of $1.21 and a 1.4% sales decline to $9.2 billion. He also forecasts an operating margin contraction of ~40 basis points to 3.7% [1].

The electronics retailer is scheduled to report its Q2 2025 earnings on Thursday. Wedbush Securities projects earnings at $1.20 a share for the quarter, with potential upside to $1.27. Wall Street is looking for $1.08, the brokerage said in a note to clients. Wedbush expects consolidated comparable sales to drop 0.5%, which it said was in line with the consensus, with potential upside to 0.9% growth. Best Buy shares were up 4.1% in Friday afternoon trade. So far this year, the stock has lost 12% in value [2].

Throughout the last three months, 12 analysts have evaluated Best Buy Co. (BBY), offering a diverse set of opinions from bullish to bearish. Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months. Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish Total Ratings 4 3 5 0 0 Last 30D 0 1 0 0 0 1M Ago 0 0 0 0 0 2M Ago 0 0 1 0 0 3M Ago 4 2 4 0 0 Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $80.58, with a high estimate of $90.00 and a low estimate of $67.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 5.39% [3].

Best Buy Co. is the largest pure-play consumer electronics retailer in the US, with over $41 billion in consolidated 2024 sales. The firm generates the bulk of its sales in-store, with mobile phones and tablets, computers, and appliances representing its three largest categories. Recent investments in e-commerce fulfillment have seen the US e-commerce channel roughly double from prepandemic levels, with management estimating that it will represent a mid-30% proportion of sales moving forward.

References:
[1] https://www.benzinga.com/analyst-stock-ratings/reiteration/25/08/47289016/best-buy-could-be-gearing-up-for-comeback-analyst-says
[2] https://finance.yahoo.com/news/best-buy-poised-second-quarter-165622903.html
[3] https://www.benzinga.com/insights/analyst-ratings/25/08/47280112/analyst-expectations-for-best-buy-cos-future