Best Buy (BBY) Could Be Facing Tough Second Half

BofA/Merrill Lynch earlier affirmed an Underperform rating on Best Buy (NYSE: BBY) and lowered its price target to $29.00 (prior $30.00). Research analyst Denise Chai said he was less confident in the product cycle following upstream checks.

Based on commentary from TV vendors, TV volumes are seen as flattish in 2015. This could imply softness in the second half of the year, as general TV market weakness more than offsets 4K momentum, said Chai.

Chai also noted a challenging broad vendor outlook, with increasing inventor and 6 out of 10 of Best Buy's top vendors posted a negative sales surprise last quarter.

For an analyst ratings summary and ratings history on Best Buy click here. For more ratings news on Best Buy click here.

Shares of Best Buy closed at $32.00 yesterday.

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