04:04 PM EDT, 05/13/2024 (MT Newswires) -- Best Buy's ( BBY ) Q1 results are expected to inline or slightly below expectation, but EPS is expected to beat consensus marginally, UBS said in a note Monday.

The market wants to see signs of a consumer electronics recovery, but Best Buy's ( BBY ) Q1 may indicate it's still a ways off. While personal computers are expected stabilize, other important categories like appliances and home theater could still remain sluggish. As for its stock movement, despite Best Buy ( BBY ) being on the good side of the bullish investors, the skeptics could pivot the stock movement in any direction depending on the Q1 results.

Additionally, Best Buy ( BBY ) needs to balance market share and cost-cutting efforts, the note said. It announced workforce reduction earlier this year. But, it has to consider the fact it does not affect customer experience and it can still maintain market share against well established brands like Walmart (WMT), Target (TGT), Amazon.com (AMZN) and Costco(COST).

The company will guide to a similar quarter as Q1, which will put pressure for recovery in the second half to meet the upper end of the full-year guidance.

UBS maintains a neutral rating on Best Buy ( BBY ) with a price target of $85.

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