Credit Suisse downgraded Best Buy (NYSE: BBY) from Outperform to Neutral on Wednesday, with its price target dropping from $36.50 to $31.00. Analysts at Credit Suisse changed the recommendation due to concern over second-half top-line expectations. The downgrade follows Best Buy’s announcement on June 3rd that CEO Hubert Joly sold 398,000 shares, nearly half of his stake.
“We still believe there is significant value at this level with Best Buy trading close to prior trough levels, yet we see a more difficult battle between controllable vs. uncontrollable factors this year, which creates uncertainty that may continue to limit upside to the stock in the near term,” Credit Suisse said in a Wednesday note to clients.
Shares of Best Buy momently dipped in the premarket following the bearish news, but they slightly rebounded in the morning trading. BestBuy closed at $29.34, 0.58% up from previous close price. Best Buy share price has increased as high as $39.10 in the past 52 weeks, while the lower range in the past 52 weeks has been $25.31.
Best Buy has struggled in recent years, attempting to deal with lower sales growth by cutting cost and repurchasing shares. The complex and changing retail environment, including the competition from online retailers like Amazon, is challenging the company’s operations.