Goldman Sachs Slashes Best Buy (BBY) PT to $59, Warns of Volume and Pricing Risks

Best Buy Co., Inc. (NYSE:BBY) is included among the 14 Value Stocks with Highest Dividends.

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On April 13, Goldman Sachs analyst Kate McShane double-downgraded Best Buy Co., Inc. (NYSE:BBY) to Sell from Buy. It also reduced the price target to $59 from $76. The firm sees risk to sales following the Q1 report as higher memory costs begin to flow into laptop and computer prices. It also pointed to margin pressure. Consumers may shift toward lower-priced models, and volumes could decline as manufacturers scale back shipments, the analyst said in a research note. Goldman added that the company is still struggling to grow its appliance and consumer electronics categories.

During its Q4 2026 earnings call, Best Buy shared its outlook for fiscal 2027. Revenue is expected to range between $41.2 billion and $42.1 billion. The company said comparable sales could fall 1% or rise 1%, reflecting a steady but uncertain demand environment. It also expects an adjusted operating income rate of about 4.3% to 4.4%, with adjusted diluted EPS between $6.30 and $6.60.On capital allocation, Best Buy plans to spend about $300 million on share repurchases. Capital expenditures are expected to be around $750 million. Corie Barry, CEO, said the company is operating in a mixed macroeconomic backdrop and expects comparable sales growth to remain within the range of down 1% to up 1%. Matthew Bilunas, CFO, noted that the gross profit rate should improve by about 30 basis points from the prior year, supported by growth in Best Buy Ads and its US Marketplace operations.

Best Buy Co., Inc. (NYSE:BBY) focuses on delivering technology solutions in a more personalized way. It operates through two segments: Domestic and International.

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