Best Buy (BBY) Positive Consumer Electronics Comp Seen as Good Sign - Deutsche Bank

Deutsche Bank analyst Mike Baker discussed Best Buy (NYSE: BBY) in a research report on Thursday, noting its first positive consumer electronics category comp in 16 quarters. In his view, this is a "good sign of better sales to come."

"This week, we look at recent results from BBY, and in particular, the first positive comp in its “consumer electronics (CE)” category – which includes the all-important televisions category, in 16 quarters. BBY reported a CE comp of +0.2% in 2Q14, whereas the last positive comp in the CE category was back in 1Q10 at +5.6%," said Baker.

"We believe the primary driver of this improvement is televisions, being lead by the new UHD technology. We know that CE is 30% of the total domestic mix, and we estimate that flat panel tvs is the large majority, or about 20% of the total domestic mix. On our estimates, we believe BBY comped up in the low single digit range, or about +3% in flat panel tvs. This was offset by weaker sales in tablets and mobile categories, but we see this inflection point in “consumer electronics” as a good sign for better sales trends to come, particularly if new phone launches prove successful," he added.

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 $31.69 yesterday.

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