Best Buy Analysts Update Ratings Amid Declining Revenue

MINNEAPOLIS, Minn. — Best Buy Co, Inc. has recently been the focus of analysis from 22 financial analysts, revealing a range of opinions from optimistic to pessimistic as of May 23, 2025.

The analysts have provided their ratings and price targets over the last quarter, highlighting a significant average price target of $90.00, with a high estimate of $110.00 and a low estimate of $64.00. This reflects a decline of 9.71% from the previous average target of $99.68.

Best Buy is currently the largest pure-play consumer electronics retailer in the U.S., with projected consolidated sales of $41.5 billion in 2024. The company holds approximately 8% of the North American market and around 33% of offline sales, as per calculations based on data from CTA and Euromonitor.

Sales for Best Buy primarily come from physical stores, with mobile phones, computers, and appliances being its top three selling categories. The shift towards e-commerce accelerated during the COVID-19 pandemic, doubling from pre-pandemic levels. Management estimates e-commerce will account for approximately 30% of sales going forward.

Despite its scale, Best Buy faces challenges. The company reported a revenue decline of about 4.77% as of January 31, 2025, indicating difficulties in maintaining top-line earnings.

The analysis also points out that Best Buy’s net margin of 0.84% stands below the industry average, coupled with a high debt-to-equity ratio of 1.44, illustrating significant reliance on borrowed funds. In contrast, the company’s return on equity is 3.97%, better than industry figures.

These insights from analysts are derived from various sources, including company conference calls and financial statements. Analysts use this information to provide guidance on investing based on their evaluations and forecasts.

As analysts continue to monitor Best Buy’s performance, the company remains a key player in the consumer electronics sector.