Best Buy: Top Holiday Pick
November 30, 2009 12:34 PM
Analysts at Citigroup came out with their top holiday pick after accessing several hardline retailers on the morning of Black Friday. The Firm set a one month price target at $45.00 for Best Buy Co., Inc. (NYSE: BBY).
The Firm Said “BBBY saw stronger BF traffic before 10am to take advantage of the 20% off entire purchase before 10am. Cash register flow & customer service were also proceeding smoothly. We think the co’s prudent inventory mgmt, cost savings efforts, debt free balance sheet, & potential to gain share will enable the co. to meet or beat consensus expectations over the next yr.”
Commenting on the over retail traffic on the morning of Black Friday, the Firm said “Traffic was notably higher versus last year in most of the retail locations we visited and could drive upside to comps, margins and valuations, in our view. We observed the strongest traffic at Best Buy, with long lines at store opening and registers, and better than expected traffic at Office Depot. Home furnishings retailers had relatively lower traffic, likely due to significantly fewer promotions.”
Today, BBY is up 0.50% at $43.04.
