Goldman Sachs Remains Neutral On BBY

Goldman Sachs is remaining Neutral-rated on Best Buy Co., Inc. (NYSE: BBY) with a $38, 12-month price target based on risk/reward (relative P/E) and DCF.

“Key risks: downside: ongoing TV weakness, promo activity; upside: TV recovery,” Goldman Sachs writes.

Goldman Sachs also notes a couple of emerging efforts that could help the firm.

“1. A product return / buyback program, cited in the trade press in recent days. This effort involves selling consumers the right to return goods on a sliding scale, based on depreciation curves by category, for a fixed price.”

“2. A new prototype, currently operating in roughly a dozen stores in Las Vegas and Pittsburgh, for the past seven weeks. Key changes are aesthetic, although we believe that there are labor model changes beneath the surface, as well.”

Best Buy Co. currently trades at $35.52.