Best Buy Upped on RadioShack Rumors
NEW YORK (
) --
Best Buy
(BBY) - Get Best Buy Co., Inc. Report
was upgraded on Monday on the possibility that it may acquire rival
RadioShack
(RSH)
.
FBR Capital Markets upped the electronics retailer to market perform from underperform. Analyst Stephen Chick said that an acquisition of this nature would be beneficial to Best Buy, comparing it to the company's 50% ownership of U.K.-based Carphone Warehouse.
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While the deal would be a benefit to earnings, there is still risk to merging the two companies, Chick wrote in a note. "We would like to let the dust settle here in order to better assess the risk/reward of Best Buy."
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Separately, Best Buy also announced that it will sell
Barnes & Noble's
(BKS) - Get Barnes & Noble, Inc. Report
Nook e-reader starting on April 18. The Nook will cost $259.99.
Best Buy was also the exclusive retailer of
Apple's
(AAPL) - Get Apple Inc. Report
iPad when it launched earlier in the month.
-- Reported by Jeanine Poggi in New York.
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