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Best Buy Co Inc BBY shares are trading lower Wednesday following a downgrade from BofA Securities.
What Happened: BofA analyst Elizabeth Suzuki downgraded Best Buy from a Neutral rating to an Underperform rating, citing a “challenging environment” ahead of the retailer.
The firm has been tracking holiday spending and noted that credit and debit card data trends are “tepid,” with consumer electronics down the most. The BofA analyst anticipates softening demand trends for Best Buy moving forward.
BofA also ran a home survey that showed consumers intend to spend less on consumer electronics over the next 12 months as they prioritize toward necessary items like food and fuel.
“With few positive catalysts for BBY shares in the next 12 months, we see relative upside to stocks in our coverage that have a more favorable macro cycle, a store expansion story, and/or that sell non-discretionary product categories,” Suzuki wrote in a note to clients.
See Also: US Stocks Search For Direction As Inflation-Induced Momentum Falters Ahead Of Fed Decision
BBY Price Action: Best Buy has a 52-week high of $112.96 and a 52-week low of $60.79.
The stock was down 3.88% at $80.81 at time of publication, according to Benzinga Pro.
Photo: Mike Mozart from Flickr.
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Image and article originally from www.benzinga.com. Read the original article here.