Best Buy shares could rise 20 percent this year: Barron's

Sun Jan 11, 2015 6:01pm EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

NEW YORK (Reuters) - Shares of retailer Best Buy Co Inc BBY.N could rise 20 percent this year to $45 a share, and even beyond, Barron's reported in its Jan. 12 edition.

The electronics chain, which saw shares drop to under $12 a share in December 2012 from $40 in January 2010 on sales declines and deep losses, has benefited recently from a healthy allocation of Apple's iPhone 6 and is poised to ride a major upgrade cycle in televisions.

However, the stock isn't without risk. The retail sector remains in upheaval, and threats from online retailers, including Amazon.com Inc AMZN.O, could threaten its profits, the Barron's report added.

Cost-cutting measures along with an expanding number of stores has helped the retailer.

Best Buy shares closed on Friday at $38.06 a share. The company is expected to report holiday same-store sales on Thursday, and while management says to expect "flattish" results, the street is looking for a 0.8 percent increase, the report said.

(Reporting by Catherine Ngai; Editing by Eric Walsh)

 
Shoppers wait for a Best Buy store to open on Thanksgiving Day to get pre-Black Friday bargains using tickets issued to them in line outside the store in Broomfield, Colorado November 27, 2014.  REUTERS/Rick Wilking