UBS Raises Price Target on Best Buy (BBY) Following Solid 2Q
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
UBS reiterated a Neutral rating on Best Buy (NYSE: BBY), and raised the price target to $38.00 (from $33.00), following the company's 2Q earnings report. Appliances comped up 8.2% and now represent 9% of BBY’s TTM sales. Also, its eComm growth of 24% was above the 20% mark for the second quarter in a row, showing it can hold its own through this channel.
Analyst Michael Lasser commented, "The narrative around BBY has been evolving, but this Q added credibility that it's on a sustainable turnaround. Its comp spread vs. the industry (as defined by NPD) widened to 400 bps. This marked a reversal from the diminishing gains over the last 2 Qs. The read is BBY’s path is more in its own control than the market gives it credit for since it only trades at 11x-12x our ’17 EPS. Though, we aren't sure it will ever get a premium valuation given the competitive intensity of the industry, commodity nature of the category, scale of price deflation of the products, & concentration of the vendor base. Though, BBY has repeatedly & consistently shown it isn’t being slowed by these factors."
Shares of Best Buy closed at $39.23 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Skyworks Solutions (SWKS) PT Raised to $105 at Oppenheimer Following 1Q Report
- Bassett Furniture (BSET) PT Raised to $28 at Stifel Following 4Q EPS Beat
- J.B. Hunt Transport Services (JBHT) PT Lowered to $99 at UBS Following 4Q EPS Miss
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesUBS, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!