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Oppenheimer Maintains a 'Perform' on Best Buy (BBY); Clearly A Fluid Situation

August 29, 2012 9:03 AM EDT Send to a Friend
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Price: $31.89 --0%

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    16 Buy, 8 Hold, 4 Sell

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Oppenheimer maintains a 'Perform' on Best Buy (NYSE: BBY) price target of $17.00.

Analyst, Brian Nagel, said, "Clients continue to ask whether we believe former Best Buy chairman Richard Schulze will prove successful in his attempt to take the company private. The BBY situation is clearly fluid. Shares are likely to remain susceptible to an ongoing deluge of data from BBY and its potential suitors. In the end, we view a deal to purchase Best Buy as unlikely. Ample cash flow and a still healthy balance sheet suggest that BBY could support the added leverage associated with a leveraged buyout (LBO). We believe, however, that potential private equity buyers will ultimately balk at a deteriorating business model that is increasingly falling victim to the inroads of new non-traditional CE competitors and a weak product cycle."

For an analyst ratings summary and ratings history on Best Buy click here. For more ratings news on Best Buy click here.

Shares of Best Buy closed at $17.86 yesterday.




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