Flat-Panel Glut Leads to Best Buy Downgrade
Is there such a thing as too many flat-panel TVs? For Best Buy and some other retailers, there clearly is. According to the Wall Street Journal, a market-wide glut of flat-panel TVs has caused Best Buy’s stock to be dropped to neutral by UBS Securities.
“We are increasingly concerned,” the Journal quoted the analysts as saying, “that excess inventory in the Global LCD TV Supply Chain combined with a more challenging demand environment in the U.S. will foster increased promotional activity in the Consumer Electronics Retail Sector and in turn weigh upon sales growth and margin trends at Best Buy.”