Best Buy (BBY) - Get Report was the subject of multiple bullish analyst notes Wednesday after the electronics retailer reported extremely strong quarter-to-date online sales.
Best Buy shares were climbing 6.3% to $96 per share Wednesday morning after reporting that online sales rose 255% from May 3, the beginning of its current fiscal quarter, to July 18, thanks to growth in demand for computers, appliances and computer tablets.
Wedbush kept its neutral rating on the stock, but raised Best Buy's price target to $95 from $75 per share.
"We expected Best Buy to struggle through the difficult environment brought on by COVID-19. Instead, Best Buy’s management team has once again shown agility and tenacity, by finding innovative ways to exploit the favorable trends within the current work-from-home/learn-from-home/play-from-home," Wedbush's note said.
Analysts at Telsey kept Best Buy's outperform rating while raising its price target to $105 from $95 per share, calling Best Buy the company "best positioned" to benefit from a consumer shift in spending towards electronic products.
Analysts at Guggenheim maintained their buy rating and $100 price target with expectations that the company can reach 5% comp growth in the quarter.
Guggenheim estimated that comps have improved more than 2,000 basis points after the company's re-opening of stores on June 15 to being up 16% from being down 7%. "This acceleration is tied to broad-based demand strength," Guggenheim analyst Steven Forbes said.
Best Buy said sales for the company's fiscal second quarter have risen 2.5% through July 18, compared to last year's pace. Accounting for sales in stores that began fully re-opening on June 15, Best Buy said, the increase is 15% from last year.
Best Buy previously pulled its full year guidance in March, but the company said that it will have additional business updates when it releases its full second quarter results on August 25.