Best Buy slides as Goldman reportedly downgrades to 'sell'

Best Buy

13/04/2026 13:19

** Best Buy's BBY.N shares down 4% premarket to $59.85 after reports Goldman Sachs downgrades electronics retailer to 'sell'

** While BBY likely to benefit from a pull-forward of PC (personal computer) demand and higher tax returns in Q1, Goldman thinks there will be sales risks post Q1 as higher memory costs begin to work their way into laptop and computer prices, CNBC reported

** Last month, BBY posted Q4 profit beat and acknowledged soaring prices for memory chips — stemming from a supply shortage caused by the tech industry racing to build out AI capacity — have added to costs

** Goldman cuts PT to Street-low $59 vs median of $72, according to LSEG data

** Of 26 brokerages covering BBY, recommendation breakdown is 6 "strong buy" or "buy", 18 "hold" and 2 "sell"

** Through Fri close, stock down 6.8% YTD compared to 4.6% decline for S&P 500 Consumer Discretionary sector .SPLRCD

** Stock recently traded at 9.5x forward earnings, below five-year avg forward PE of roughly 12x, suggesting it may be undervalued

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))