Wells Fargo Raises Best Buy Price Target to $75 from $67, Maintains Equal Weight Rating

Wells Fargo raised its price target on Best Buy to $75 from $67 and kept an Equal Weight rating. The company topped Q2 expectations, with quarter-to-date comparable sales tracking +low single digits, and an intact FY26 outlook. However, Wells Fargo believes obstacles remain, and sees less room for error after the recent rally.

Minneapolis, July 2, 2025 — Best Buy Co., Inc. (NYSE: BBY) reported strong financial results for the second quarter of fiscal year 2026 (Q2 FY26), ending August 2, 2025. The company announced that its comparable sales increased by 1.6%, with adjusted diluted earnings per share (EPS) of $0.87. The adjusted diluted EPS was $1.28, exceeding the company's guidance of $1.20 to $1.30 [1].

The company's revenue for Q2 FY26 was $9.438 billion, up from $9.288 billion in the same period last year. The domestic segment revenue increased by 0.9% to $8.70 billion, while international revenue grew by 11.3% to $740 million. Online sales in the domestic segment also saw a significant increase of 5.1% [1].

Best Buy's CEO, Corie Barry, noted that the strong sales performance was driven by new technology innovation, a seamless omni-channel customer experience, and strong vendor partnerships. The company expects comparable sales growth to continue in the third quarter and reaffirmed its full-year guidance of $41.1 billion to $41.9 billion in revenue, with adjusted diluted EPS of $6.15 to $6.30 [1].

Wells Fargo & Company raised its price target on Best Buy to $75 from $67, maintaining an Equal Weight rating. The analyst firm highlighted the company's robust Q2 performance, with quarter-to-date comparable sales tracking in the low single digits. However, Wells Fargo also expressed concerns about potential obstacles and a limited margin for error following the recent rally [2].

Best Buy's adjusted operating income rate improved to 3.9%, driven by strong sales growth and a slight increase in operating expenses. The company also reported $114 million in restructuring charges and returned a total of $266 million to shareholders through dividends and share repurchases [1].

The company's stock price has been volatile in recent weeks, reflecting market sentiment around the company's performance and potential risks. Despite the positive Q2 results, investors should remain cautious, as the company faces uncertainties such as potential tariff impacts and competitive pressures in the retail sector.

References:

[1] Best Buy Co., Inc. (2025). Best Buy Reports Second Quarter Results. Retrieved from https://corporate.bestbuy.com/2025/best-buy-reports-q2-fy26/
[2] Wells Fargo & Company (2025). Wells Fargo Raises Price Target on Best Buy. Retrieved from https://www.wellsfargo.com/investor/analysis/