Best Buy shares could rise 20 percent this year: Barron's
NEW YORK (Reuters) - Shares of retailer Best Buy Co Inc (BBY.N: Quote) 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: Quote), 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)
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