03:08 PM EST, 11/25/2025 (MT Newswires) -- Best Buy ( BBY ) posted solid Q3 results and continues to operate well in a challenged vertical, but it needs a more robust product cycle for sustainable growth, Truist said in a Tuesday research report.

While AI hardware, gaming refreshes, and mobile categories provide opportunities, the concerns around sustained comp momentum remain, analysts wrote.

Despite more difficult comparisons, the computing segment should grow again in 2026, given the large number of computers that need to be upgraded to leverage AI capabilities. Better topline performance is expected as the company faces fewer roadblocks to sales, but promos and financing discounts could limit earnings, according to the note.

The brokerage said it maintained its 2025, 2026, and 2026 EPS estimates at $6.35, $6.85, and $7.35, respectively.

Alternate revenue streams are still in the nascent stage but are growing. The company forecasts marketplace and advertising to be neutral to earnings in 2025, but scale next year and beyond, according to Truist.

The brokerage reiterated its hold rating on the stock and increased its price target to $84 per share from $79.

Price: 79.35, Change: +3.72, Percent Change: +4.93