The brokerage firm downgraded BBY to "neutral" from "outperform"
The shares of Best Buy Co Inc (NYSE:BBY) are down 1.7% to trade at $115.74 at last check, after the technology retailer received a downgrade at Wedbush to "neutral" from "outperform," as well as a price-target cut to $125 from $135. The analyst in coverage believes the equity will continue to trail behind the home furnishings and improvement category this year, which was said to look more attractive amid ramped up Covid-19 vaccinations.
On the charts, Best Buy stock has been trading mostly sideways since recovering from a trip down to the $95 level in March. The 250-day moving average contained this pullback, helping shares move just shy of a Nov. 5, all-time high of $124.87. Year-over-year, BBY sports a 60.9% lead.
Analysts were mostly optimistic towards the security coming into today, with 10 of the 17 in question carrying a "buy" or better rating, while the remaining seven said "hold" or worse. Meanwhile, the 12-month consensus price target of $116.90 is right in line with current levels.
Finally, now could be an ideal time to weigh in on Best Buy stock's next move with options. The security's Schaeffer's Volatility Index (SVI) of 25% sits at the bottom percentile of its annual range. In other words, the equity sports affordably priced premiums right now.