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