Loop Capital Trims Best Buy (BBY) Price Target, Maintains Buy Rating

Loop Capital lowered its price target on Best Buy Co., Inc. (NYSE:BBY) to $80 from $90, on May 31, while reaffirming a Buy rating following the retailer’s better-than-expected first-quarter results. In a note to investors, the firm acknowledged that Best Buy’s Q1 performance outpaced expectations, signaling resilience in a challenged consumer electronics market. However, management’s slight downward revision of its full-year fiscal 2025 guidance introduced a note of caution. The adjustment, according to Loop, is reasonable given the ongoing uncertainty surrounding global trade and tariff policies.

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The analyst pointed to macroeconomic ambiguity and shifting regulatory landscapes as key factors clouding the retailer’s near-term outlook. Nevertheless, Loop Capital remains optimistic about Best Buy’s strategic direction heading into the second half of the year. Particularly, the company’s planned rollout of a third-party marketplace is viewed as a meaningful growth lever, positioning Best Buy Co., Inc. (NYSE:BBY) to tap into new revenue streams and broaden its product assortment. Additionally, the continued development of its retail media network is expected to boost margins and enhance digital engagement.

Loop Capital sees these initiatives as offsetting some of the short-term pressures, reinforcing its longer-term confidence in the stock. The firm believes execution on these fronts will be critical to regaining momentum amid competitive industry dynamics.

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