Michael Vi
Best Buy (NYSE:BBY) jumped in early trading after UBS upgraded the retailer to a Buy rating from a prior stance of Neutral. The firm thinks Best Buy (BBY) is set to benefit from a consumer appliance upgrade cycle as well as new product offerings.
Analyst Michael Lasser said those tailwinds could come together to drive a “nice recovery” in Best Buy’s (BBY) sales in the back half of 2025 and into 2025. “It should be evident that BBY’s market share tends to flourish at the earlier stages of a product cycle,” he noted. Lasser said.
Notably, Lasser thinks Best Buy’s (BBY) restructuring efforts should lead to significant earnings torque as comparable sales improve.
“Its employees per store has fallen from 102 in FY’20 to 77 last year. Even if this rises to 83, and BBY comps up 3% next year, it could drive EPS of $7.30+ (versus cons. $6.70 today).”
UBS assigned a price target to Best Buy (BBY) of $106 to represent more than 20% upside potential.
Shares of Best Buy (BBY) were up 3.46% in premarket trading to $90.23, which is above the 52-week high for the stock. BBY has rallied more than 15% over the last six weeks. Short interest on BBY stands at 7.19% of the total float. The dividend yield for new buyers of the stock is 4.31%.
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