Best Buy Hits Two-Year High as Joly Forges Turnaround
This story has been updated from 11:39 am EDT with closing stock prices.
NEW YORK (TheStreet) -- Best Buy
Credit Suisse analyst Gary Balter resumed coverage of the electronics retailer, rating the stock "outperform" while raising his 12-month price target by $8 to $40.
"Best Buy shares offer the most upside amongst so-called hardline retailers (companies that sell things like appliances, electronics and furniture), due to the steps CEO Hubert Joly and executive management are taking to turnaround the company, including its cost-savings initiative as well as revamping its online channel (which includes creating a better "omnichannel" experience) and, most importantly, creating stores within its store with partnerships with Microsoft
Best Buy reached the highest level since July 2011, and has gained more than 150% this year. That compares with the 13% year-to-date increase for the S&P 500. More than 11.7 million shares traded hands on Monday, above the stock's three-month daily trading average of 8.3 million shares.
Including Balter, just under half of the 29 sell-side analysts who cover the stock rate the company at a buy or buy-equivalent rating, according to Bloomberg data.
Balter wrote he believes that Best Buy has the same potential as other turnaround names, including PetSmart
"If there is one line to describe the change, it is that BBY is turning its store base from a cost liability to an offensive weapon, part of its multi-fanged distribution approach to customer satisfaction," the note said.