International Strategy & Investment Group Has Hold On Best Buy

International Strategy & Investment Group Inc. is out with a research report on Best Buy (NYSE: BBY) and it has a Hold rating and a $25 price target on shares.

In a note to clients, International Strategy & Investment Group writes, "All eyes will be on comps, domestic gross margin, potential strategic shifts (including potential decision to close big box UK stores), further sq ft rationalization, and ramifications of pending CA state sales tax. In addition, there is a chance that Best Buy will cut its 2011 guidance to around $3.00 from $3.30 - $3.55. We upgraded BBY from Sell to Hold on 8/8 with the view that headwinds of negative traffic, Apple/Amazon share gains, and accelerating price disintermediation from mCommerce were largely reflected at $24. The growth of Best Buy Mobile and Tablets, as well as a 13% FCF Yield are positives for BBY."

Shares of BBY closed at $24.50 on Friday.