Best Buy's (BBY) Q1 print is expected to show that the company has been able to navigate a volatile backdrop, with its recent leadership transition and rising memory costs becoming overhangs on the stock heading into the results, UBS said in a Friday note.
The market is expecting the company to post flat to 1% comparable sales versus consensus forecast of 0.8%, when the company reports its Q1 results this week, UBS said.
This print is expected to show that Best Buy's strategy to structurally improve its P&L is gaining traction as it builds momentum in its marketplace and advertising businesses, with the company's sales performance expected to include in newer and emerging categories such as AI glasses and collectibles, UBS said.
Additionally, the company's chief executive transition will likely be of focus, UBS said, adding that any indication on how this appointment changes the company's strategy will be key input into the company's stock over the next 12 months.
UBS maintained its buy rating with a $85 price target.
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