01:35 PM EST, 02/29/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of $76, up $2, is 12.5x our FY 25 EPS view of $6.13 (cut $0.28; FY 26 set at $6.58), a discount to the five-year forward P/E ratio of 12.8x. FQ4 adj-EPS of $2.72 (+4.2% Y/Y) beat by $0.22 on revenue of $14.6B (-0.6% Y/Y), $80M above consensus. A comparable sales decline of 4.8% (domestic -5.1% Y/Y, international -1.4% Y/Y), vs. FQ3's -6.9%, was offset by $735M in revenue from a 53rd week in FY 24. Gross margin of 20.5% (+50 bps Y/Y) was offset by SG&A of 15.5% (+20 bps Y/Y) netting a 20-bp EBIT margin jump to 3.8%. BBY's FY 25 guide begins with a comparable sales decline of 1.5% vs. -6.1%, EBIT margin of 4% vs. 4%, and EPS of $5.98 vs. $6.37 (midpoints). We attribute BBY's operational performance to membership offerings and benefits from what appears to be a stabilizing consumer electronics industry. We view AI-related products as offering top-line momentum, but expect these benefits to materialize in FY 26. Lastly, we think replacement cycle extension remains a risk due to consumer health.