Overcome Buy stock slipped Thursday after a top retail brokerage firm downgraded dividends on fears that Wall Street has already priced in the store’s comeback.
Telsey Advisory Group cut its rating to market perform from outperform, sending rations sliding. Best Buy closed down 0.7 percent Thursday.
“The low match up fruit has already been picked, and going forward, the company is growing investments in technology, labor, and supply chain to maintain its leadership posture,” Telsey analyst Joseph Feldman wrote to clients. “The overall offshoot cycle remains average in 2018, with no highly-anticipated launches. Smart-home widgets and appliances remain growth areas, while we anticipate weaker inclines in computing and mobile phones.”
Feldman added that given Most desirable Buy’s impressive performance in 2017, the new year will likely make for inviting same-store sales comparisons — a closely watched metric in retail. He prevents same-store sales of -1.5 percent in the second quarter and -1 percent in the third point.
Best Buy shares are up roughly 70 percent the last 12 months after the retailer showed there tranquillity may be a place for an in-store experience with electronics.
The analyst’s new 12-month toll target of $81 represents 5 percent upside from Wednesday’s nearby.
Dana Telsey, CEO of Telsey Advisory Group, is a widely followedvoice in the retail intermission. Before founding her firm in 2006, she spent over a decade at Be worthy of, Stearns & Co. covering retail as a senior managing director and is consistently ranked as a top amass picker in the industry.