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Jefferies Sees Positive Holiday Comps at Best Buy (BBY)

January 12, 2016 8:31 AM EST
Get Alerts BBY Hot Sheet
Price: $82.03 +0.20%

Rating Summary:
    11 Buy, 19 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Jefferies analyst, Daniel Binder, expects Best Buy (NYSE: BBY) to announce positive comp store sales for the holiday period later this week supported by checks at CES. No change to Buy rating or $47 PT.

The company plan was for flattish revenue growth in the domestic business and we think comp store sales should be up about 1% helped by strength in TVs, appliances and wearable technology. The company plan was for flattish revenue growth in the domestic business and we think comp store sales should be up about 1% helped by strength in TVs, appliances and wearable technology.

The analyst is projecting 4Q domestic same store sales of +1.0% but notes that recently, outperformance has been about 400 bps.

Based on field checks and vendor checks last week at the CES show, they think Best Buy fared well in TVs, helped by the growing popularity of 4K TV and lower price points, which included some compelling promotions through the holiday season. In fact, three of the top vendors highlighted strong inventory positions heading into holiday, but based on robust sales still managed to sell through the better performing skus.

Other areas of strength include appliances and wearable technology while areas of weakness include tablets and mobile.

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 $29.43 yesterday.



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