Best Buy(US:BBY) 智通财经网·2025-11-17 01:37Core Viewpoint - UBS indicates that Best Buy (BBY.US) is likely to showcase a strengthening business model in its upcoming earnings report, benefiting from a new wave of technology products and internal cost controls, setting a solid foundation for a robust holiday season and constructive outlook through 2026 [1] Group 1: Earnings and Sales Performance - UBS maintains a "Buy" rating on Best Buy and raises the target price from $90 to $93 [1] - Investors expect same-store sales growth in Q3 to exceed the consensus estimate of 1.4%, with most anticipating an increase between 2% and 3% [2] - If sales trends remain strong, Best Buy may slightly raise its full-year earnings per share guidance above the current range of $6.15 to $6.30, creating mild upward pressure on expectations [2] Group 2: Strategic Initiatives - The launch of Best Buy's third-party marketplace in the U.S. is a significant strategic move, increasing online product offerings by approximately six times, including expanded categories like sports goods and kitchenware [3] - UBS estimates that this marketplace could drive revenue growth by up to 90 basis points by FY2027, with attractive long-term profit margin prospects despite short-term profit contributions being limited due to initial investments [3] - Structural factors supporting business growth include a broader device replacement cycle, potential rebounds in housing-related categories, and increased sensitivity of consumer electronics to upcoming fiscal policy changes [3] Group 3: Holiday and Q4 Outlook - UBS expects a positive sales trend to continue into Q4, with same-store sales projected to grow by 0.8%, while UBS predicts a growth of 1.5% [4] - Strong performance may lead to slight profit growth, aided by cost leverage, although gross margins could face slight pressure due to product mix and promotional activities [4]