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Best Buy Price Target Up at Raymond James Before Earnings

Raymond James analyst Matthew McClintock lifted his price target for Best Buy to $135 from $100 before the electronics retailer reports Tuesday.
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Best Buy  (BBY) - Get Best Buy Co., Inc. Report shares rose after Raymond James analyst Matthew McClintock lifted his share-price target for the electronics retailer to $135 from $100 ahead of the company’s earnings report Tuesday.

The $135 level is the highest on Wall Street, Bloomberg reports. McClintock affirmed his strong buy rating. The new target indicates 18% upside from the stock's closing price Friday at $114.

Best Buy shares recently traded at $117.14, up 2.8%. The stock has jumped 33% year to date. That compares with a 5% increase for the S&P 500 index during that period.

The Richfield, Minn., electronics retailer said last month that for the period during which it was reopening stores - June 15 through July 18 - its sales rose 15% from a year earlier.

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McClintock wrote in a commentary that his earnings estimates are “well above consensus,” Bloomberg reports. He predicted second-quarter earnings per share of $1.22 with comparable sales rising 6%.

Second-half comparisons should benefit from sustained growth in tech-related spending and growing demand for videogames, home theater and mobile phones, he said.

Telsey, which rates Best Buy shares outperform, forecasts quarterly sales growth of 3.9% to $9.9 billion, on comparable-sales growth of 4.5%, Bloomberg reports.

Telsey expects Best Buy to keep thriving on work-from-home and remote-learning trends, its growing services and health-care businesses; and new gaming-console launches later in 2020.

RBC rates Best Buy sector perform. Positive sales trends have “largely continued or even improved further,” thanks to extension of work-from-home policies and preparation for remote education, RBC said, according to Bloomberg. It predicts Best Buy’s expenses will trail recent levels, as a result of furloughs.