Updated from 11:02am EST to include commentary from TheStreet's Rocco Pendola and stock price changes.
NEW YORK (TheStreet) -- Best Buy (BBY - Get Report) announced disappointing quarter-to-date sales on Thursday, and said that the highly promotional landscape this holiday season cut into profit. Shares plummeted 30% as investors exited the stock.
So now that the carnage is over, does Thursday's stunning share drop in Best Buy's stock present a buying opportunity? At least two analysts say no.
UBS analyst Michael Lasser cut his rating on Best Buy to "neutral" from "buy" and slashed his 12-month price target by $19 to $29. Goldman Sachs analyst Matthew Fassler took Best Buy off of Goldman's "Americas Buy List" and also downgraded the stock to a "neutral" rating. He cut his price target by $17 to $28.
Best Buy shares closed down 9% to $24.41 on Friday, a level not seen since April 2013.
Must Read: Why Best Buy Is Plunging
Best Buy said comparable store sales for the first nine weeks of the quarter fell 0.9% for its roughly 1,500 U.S. stores. Total revenue, which includes international business, fell 2.5% $11.5 billion. Competing on price to win customers ultimately hit Best Buy's margin. The company revised its forecast for operating margin saying it would now be 175-185 bps lower than last year's fourth-quarter margin.
Best Buy is in the middle of a turnaround, under its Renew Blue cost-cutting initiative. The company said it will "more quickly and more deeply" lower its cost structure and look to grow its online channel at an "accelerated pace" as well as improve its multi-channel customer experience and reinvigorate and expand its Geek Squad services business.
"While there were clearly negative exogenous factors that prevailed across retail such as a challenging overall spending environment and uncooperative weather, we think BBY's financial performance should have received more help than it did from the strong gaming launches, its price investments, and its advantageous vendor relationships," Lasser wrote in a research note.
"We think the story has changed," Lasser wrote further. "The results from the last couple of months illustrate the vulnerabilities of the model. While these risks had been overshadowed by the prudent actions that the company was taking, we think they will come back to the forefront. It will take some time before the market will be able to predict if the holiday experience was one-off or if it's more long-lasting. The stock could bounce after this shakes out, but we think shares will probably remain bound in the mid-to high $20 range."