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Best Buy -2% after BAML cut

Published 11/13/2018, 08:28 AM
© Reuters.  Best Buy -2% after BAML cut
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  • Bank of America Merrill Lynch (NYSE:BAC) downgrades Best Buy (NYSE:BBY) to a Neutral rating from Buy as it expects a pause to the retailer's momentum.
  • "We continue to see best BBY as one of the highest quality hardline names but after several years of outsized growth and likely less opportunity for big beat and raise quarters, it is harder to justify valuing BBY at a premium multiple," writes the BAML analyst team.
  • Freight expenses, higher labor costs and continued reinvestment are highlighted in the report as BBY profit headwinds.
  • The firm lowers its price objective on Best Buy to $70 from $92 (13X multiple).
  • BBY -2.12% premarket to $65.73.
  • Now read: How To Retire In 2018 Facing An Uphill Battle


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