Best Buy Slides; RBC Cuts Ests On Consumer Spending Worries; CEO Says Canada Slowing; Food Or TV?
Best Buy (BBY) shares are sliding today following cautionary comments on the company from RBC Capital’s Scott Ciccarelli.
Ciccarelli is still generally bullish on the stock, which he rates “Top Pick.” But he also says that he remains concerned about the broader consumer spending environment. Ciccarelli trimmed his estimate on same stores growth for the current year to 0%-1%, from 1%-2%. He cut his EPS estimate today for the February 2009 fiscal year to $3.35 from $3.50; his price target drops to $54 from $56.
“We don’t believe any retailer is immune to the macro slowdown right now, including Best Buy,” he writes.
Another factor weighing on Best Buy shares today: cautious commentary on CNBC yesterday by CEO Brad Anderson. As Reuters reports, Anderson indicated that the company is now seeing some slowing in its business in Canada. He also reportedly said that some consumers grappling with higher food costs were finding it harder to buy pricey electronics.
Well, consumers, you have to choose. Food…HDTV…Food…HDTV…feed the belly, numb the brain…hmmmm…
BBY today is down $1.57, or 3.7%, to $40.70.

Tech Trader Daily is a blog on technology investing written from Palo Alto, California by long-time Barron's West Coast Editor Eric J. Savitz. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields.