NEW YORK (TheStreet) -- Shares of Best Buy (BBY) - Get Report are down 0.79% to $30.31 in pre-market trading on Wednesday after the retailer's stock rating was lowered to "hold" from "buy" at Deutsche Bank.
Analysts downgraded the stock and reduced their price target to $32 from $38 because the CFO plans to step down as well as the lack of cost cuts at the company.
"We think each of these are significant factors, but believe the management team transition is at the forefront and may make it difficult for the multiple to expand from here until a new track record is established," Deutsche Bank analysts said in a note this morning.
Analysts are also concerned that the consumer electronics retailer is too confident that sales will improve in the second half of the year.
"The bigger concern... is that the company's second half sales outlook is predicated on improvements in the mobile category, which may be a risky proposition especially as that business was worse this quarter than last quarter," analysts added.
On Tuesday, Best Buy shares plunged after CFO Sharon McCollam said she would step down next month and because of weak second quarter earnings guidance.
Separately, Best Buy has a "buy" rating and a letter grade of B at TheStreet Rating because of the company's attractive valuation levels and largely solid financial position with reasonable debt levels by most measures.
You can view the full analysis from the report here: BBY
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.