FMP
Jun 3, 2024 4:55 PM - Davit Kirakosyan
Citi analysts upgraded Best Buy (NYSE:BBY) to Buy from Sell, increasing their price target to $100 from $67 per share, citing a favorable catalyst trajectory.
The bank sees potential growth in Best Buy's earnings and valuation due to ongoing tech replacement cycles, new AI innovations driving additional demand, and solid margin execution.
Citi highlighted that Best Buy’s recent Q1/25 earnings demonstrated excellent gross margin execution, with internal drivers effectively countering external challenges such as increased promotional activity. This marked a pivotal shift from their previous negative outlook.
While acknowledging risks to same-store sales in the latter half of the year due to consumer uncertainty, election distractions, and a shorter holiday season, Citi remains optimistic. They believe Best Buy is nearing the end of its same-store sales declines and is close to a positive turnaround.
Citi also emphasized the importance of considering the long-term prospects as Best Buy's business returns to growth, presenting an attractive margin expansion narrative.
Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...