Jefferies said that the caliber of Best Buy’s retail media organization, with new leadership in charge and several media sales executives having recently been hired, is “top-notch.”
Best Buy (BBY) shares rose over 2% in early trading on Wednesday after Jefferies raised its price target to $95 from $88, noting that the electronics retailer’s advertisement segment would help in gross margin expansion.
Jefferies maintained a ‘Buy’ rating, according to TheFly. The firm noted that the caliber of Best Buy’s retail media organization, with new leadership in charge and several media sales executives having recently been hired, is “top-notch.”
The firm said it sees Best Buy Ads contributing to annual gross margin expansion, contrary to investor expectations of a contraction. With another alternative profit stream poised to increasingly enter the narrative, Jefferies said it believes “outdated investor perceptions” of the business model will be gradually reshaped.
Retail sentiment on Best Buy remained unchanged in the ‘bearish’ territory compared to a day ago, with message volumes at ‘low’ levels, according to data from Stocktwits.
Jefferies noted that the firm’s calendar year 2026-2028 earnings per share (EPS) estimates are an average of about 10% above the Street view.
In August, Best Buy launched its digital marketplace and more than doubled the number of products available online. The company said that customers could shop from new categories like seasonal decor, automotive tech, office and home, and movies and music.
Best Buy had then said it would also soon introduce licensed sports merchandise to its product lineup. Shares of the company have declined nearly 11% this year and have fallen 22% in the last 12 months.
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