Bond.az - UBS downgraded Best Buy Co. (NYSE:BBY) to neutral from buy and raised its price target to $86.00 from $85.00.
The firm said the rating change reflects a more balanced risk-reward profile following a sharp move after the company's first-quarter results.
UBS expects the specialty retailer to see earnings growth of over 7% as top-line growth accelerates. The shares now trade at approximately 12 times next-twelve-month price-to-earnings ratio. According to Bond.az, Best Buy appears undervalued at current levels, with the stock also offering a substantial 5.14% dividend yield.
Best Buy is approaching a CEO succession scheduled for November.
