JPMorgan Upgrades Best Buy (BBY)

JPMorgan reported on Monday that it has upgraded electronic product retailer, Best Buy Co., Inc. (BBY).

The firm’s analyst, Christopher Horvers has raised his rating on BBY to an “Overweight,” and has given the company a $29 price target. This price target suggests a 25% upside from the stock’s current price of $21.70.

The analyst commented, “our rating is based on the following: (1) having the right management team that can drive “self-help” financial improvement; (2) BBY’s ongoing efforts to regain price and assortment leadership after yielding that mantle to AMZN (covered by J.P. Morgan analyst Doug Anmuth) in recent years combined with a leveling of the tax playing field; (3) the high correlation of TVs and appliances to housing; and (4) valuation. Financially, after years of conflicting directions of comp/gross margin performance (which resulted in significant downward EPS revisions), we see second derivative improvement while CEO Jolly and CFO McCollam drive cost efficiencies in the COGS and SG&A lines. While the stock has run off the bottom, we note the price is still down from a high of $27.51 roughly one year ago.”

Best Buy shares were mostly flat during Monday morning trading. The stock has declined -15% in the past year.

The Bottom Line
Shares of Best Buy Co., Inc. (BBY) have a 3.17% yield, based on Monday morning’s price of $21.42.

Best Buy Co., Inc. (BBY) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.9 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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