As consumer electronics retailers navigate a shifting landscape marked by evolving technology and changing consumer habits, Best Buy (NYSE:BBY) finds itself at a pivotal juncture.

Analysts closely watch how the company adapts to these dynamics, with strategic moves and new product offerings potentially reshaping its future trajectory.

Telsey Advisory Group analyst Joseph Feldman maintained Best Buy with an Outperform and a $90 price forecast.

Feldman states the company’s results are stabilizing and positioned to return to growth in the second half of 2025. New product launches, including Nintendo Switch 2, should support second-quarter sales, he added.

Also Read: Can Best Buy Overcome Margin Pressures? Analyst Anticipates Q2 Earnings

However, macro headwinds will keep topline and EPS lower year-over-year.

Feldman projected Q2 2025 EPS of $1.21 versus $1.20 consensus and a 1.4% sales decline to $9.2 billion.

He forecasts an operating margin contraction of ~40 basis points to 3.7%, reflecting tariff pressures, inflation, and higher rates.

Looking ahead, Feldman maintained his 2025 EPS estimate of $6.25, above consensus at $6.16, with comps of -0.2% and an operating margin of 4.3%. For 2026, he expects EPS of $6.78 on comps of 1.6% and operating margin expansion to 4.4%.

Feldman argued that the replacement cycle for pandemic-era purchases, product innovation around AI, and growth in higher-margin areas like advertising, marketplace, loyalty, and health services will drive Best Buy’s rebound.

Ttariff risks remain high. However, Best Buy’s diversified sourcing strategies--including shifting production and consolidating volumes--are designed to soften the impact.

BBY Price Action: BBY shares were up 3.99% at $75.30 at the time of publication on Friday.

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