Citigroup Maintains Sell, $21 PT on Best Buy

Citigroup reiterates its Sell rating and $21 target price on Best Buy (NYSE: BBY) as discounting drives traffic improvement.

Citi comments, “November traffic trends to CE & Wireless retailers averaged +100bps y/y to date, a +220bps sequential improvement vs. October. This marks the first positive month of traffic since July 2010. We believe that improved traffic trends have been driven by 1) an improved product cycle (video games, mobile phones & connected platforms), 2) significant discounting in mature CE categories (FPTVs, laptops). December week 1 traffic trends deteriorated (3.4%) y/y, while November week 4 (inclusive of Black Friday) declined (0.8%) y/y.”

BBY closed at $28.11 per share, up 2.52 percent, on Friday.