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UPDATE: JP Morgan Moves Best Buy to Overweight on Valuation

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In a report published by JP Morgan, analyst Christopher Horvers upgraded Best Buy (NYSE: BBY) from Not Rated to Overweight with a $29 price target.

JP Morgan reported that, “Our rating is based on the following: (1) having the right management team that can drive “self-help” financial improvement; (2) BBY's ongoing efforts to regain price and assortment leadership after yielding that mantle to AMZN (covered by J.P. Morgan analyst Doug Anmuth) in recent years combined with a leveling of the tax playing field; (3) the high correlation of TVs and appliances to housing; and (4) valuation. Financially, after years of conflicting directions of comp/gross margin performance (which resulted in significant downward EPS revisions), we see second derivative improvement while CEO Jolly and CFO McCollam drive cost efficiencies in the COGS and SG&A lines. While the stock has run off the bottom, we note the price is still down from a high of $27.51 roughly one year ago.”

Shares of Best Buy closed at $21.45 on Friday.

Latest Ratings for BBY

DateFirmActionFromTo
Sep 2017BarclaysMaintainsOverweight
Apr 2017Bank of AmericaUpgradesNeutralBuy
Mar 2017PiperJaffrayUpgradesNeutralOverweight

View More Analyst Ratings for BBY
View the Latest Analyst Ratings

Posted-In: JP MorganAnalyst Color Upgrades Analyst Ratings

 

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