UBS slashed Best Buy Co Inc.'s (BBY) price target to $57 from $70 after news that Apple Inc. (AAPL) was cutting its sales forecast ( ). Analysts think the consumer electronics retailer's earnings are closely tied to sales of Apple products. "While Apple noted that its shortfall mostly occurred in China, the announcement highlights the risk for Best Buy from the fortunes of its key vendor partners," UBS wrote. UBS estimates that Apple products account for 15% to 20% of Best Buy sales. Moreover, Apple products are now available on Amazon.com Inc. (AMZN) and at Costco Wholesale Corp. (COST). "Expanded distribution means that it will be harder for Best Buy to sustain its share gains," UBS said. Best Buy shares took a tumble a couple of weeks ago ( ) on reports of sluggish iPhone sales. The retailer's stock is down 1.7% in Thursday trading, and down 23% for the last year. The S&P 500 index is off 9.5% for the past 12 months.
-Tonya Garcia; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
January 03, 2019 15:37 ET (20:37 GMT)
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