On Thursday, analysts at Morgan Stanley raised the price target on shares of Best Buy Co Inc BBY from $36 to $44 and maintained the Overweight rating.
Simeon Gutman believes Best Buy’s third-quarter results showed that the company has turned an important corner in improving revenue trends and will ride the momentum into the holiday season.
Gutman finds other positives moving forward include:
- A changed company
- Recent share gain momentum should continue
- Top line should turn as a result of the implemented changes
- Renew Blue cost-cutting meaningfully improves the model
- Gross margin recovery story
- Cheapest category killer
Gutman also finds Best Buy's key value drivers are its best price guarantee, new technology cycle in TVs and handsets, and extensive cost reduction work now provides a model with a great deal of leverage potential.
Shares of Best Buy recently traded at $38.80, up 2 percent.
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