Best Buy (NYSE:BBY) stock is slipping on Wednesday after Bank of America analyst Elizabeth Suzuki hit the retailer’s shares with a downgrade.
That downgrade has the Bank of America analyst dropping BBY stock from a “neutral” rating to a new “underperform” rating. That’s below the analyst consensus “hold rating,” which is made up of seven “buy” ratings, eight “hold” ratings and one “sell” rating.
To go along with that downgrade, Suzuki also decreased the firm’s price target for BBY stock to $69 per share. The prior price target was $80 per share. This new rating suggests a potential 17.9% downside for the stock. It’s also below the consensus price prediction of $82.25 per share.
Why the Bearish Stance for BBY Stock?
Suzuki said the following about BBY stock in a note obtained by CNBC:
“We believe it is in a strong position in core products and should have opportunities to expand into new categories going forward, although a medium-term pullback on discretionary retail categories presents a headwind to both sales growth and valuation.”
In addition to that statement, the analyst highlighted that current economic factors are a concern for BBY stock. That includes fears that increasing inflation and a recession in 2023 could keep consumers away from the tech retailer.
BBY stock is down 1.9% as of Wednesday morning and down 19.3% since the start of the year.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.