J.P. Morgan Remains Neutral On Best Buy

According to J.P. Morgan, Best Buy BBY remains Neutral. J.P. Morgan said that in the near term, it believes the stock will be range-bound in the low-$30s given continued secular concerns, gross margin pressures, and back half loaded earnings. “Net-net, our concerns regarding product commoditization and market share shifts should continue to result in a lower relative valuation vs. the group and the market (placing stock performance squarely on earnings revisions, in our opinion). We are maintaining our Dec 11 price target of $35 based on 10x PE using our 2011 forecasts (which equates to roughly 4x EV/EBITDA).” Best Buy closed yesterday at $30.13.