Shares of Best Buy Co Inc (NYSE: BBY) are up 20% year-to-date, and Piper Sandler says the stock is set to benefit further in the holiday season.
Peter Keith reiterates Best Buy at ‘overweight’
In a note this morning, Piper Sandler’s Peter Keith reiterated Best Buy at “overweight” and raised his price target to $155 that represents a 28% upside from here. Previously the analyst had a PT of $150 on the stock.
Earlier this month, Best Buy launched Totaltech nationwide after testing it at select stores. The exclusive perks and discounts the annual membership programme offers, Keith said, will benefit the consumer electronics retailer in the holiday season.
On top of that, Mastercard expects holiday spending to hit a record this year – another factor that Keith expects will favour Best Buy in the coming months.
Stephanie Link agrees on CNBC’s ‘Halftime Report’
On CNBC’s “Halftime Report”, Hightower’s Stephanie Link agreed with the bullish call on “great execution” amidst supply chain constraints and the global pandemic.
They’ve restructured, cut costs, lay off people. They have tough comparisons ahead, though, for gross margins and same-store sales, but I think that’s in the stock at 12 times earnings. The management has done a phenomenal job, and I like the long-term story here.
Best Buy is set to report its quarterly results in mid-November. Piper Sandler’s price lift comes more than a month after analysts at Evercore ISI said Best Buy was well-positioned to keep strong in the coming years, amidst rising inflation.
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