Market Overview

In A Sector Filled With Value Traps, Barclays Still Believes In Buying Best Buy

In A Sector Filled With Value Traps, Barclays Still Believes In Buying Best Buy

Despite all the negativity surrounding brick-and-mortar retail, especially in the electronics space, Barclays still believes Best Buy Co Inc (NYSE: BBY) is a compelling value investment.

The investment bank said that Best Buy is "well positioned to take modest share within the muted growth expectations for the broader industry that is filled with value traps."

Barclays also cited Best Buy's 3 percent dividend as "particularly attractive in a world that is starved for yield."

While e-commerce sales certainly have put Best Buy's core business at risk, the company's e-commerce sales growth is actually accelerating — with two consecutive quarters of 24 percent growth.

"We believe its shift to price matching and substantial platform improvements have provided strength that should drive an incremental acceleration in total comps," said Barclays.

Best Buy stock has jumped 13 percent in the last three weeks after reporting an "Amazon-like" Q2, according to Bloomberg Gadfly's Shelly Banjo.

Barclays has an Overweight rating on Best Buy with a $45 price target.

At time of writing, Best Buy was up 0.29 percent on the day, trading at $37.41.

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Latest Ratings for BBY

Feb 2021UBSMaintainsNeutral
Feb 2021B of A SecuritiesUpgradesNeutralBuy
Dec 2020Goldman SachsDowngradesNeutralSell

View More Analyst Ratings for BBY
View the Latest Analyst Ratings


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