NEW YORK (TheStreet) - Best Buy (BBY) may continue to see strong stock gains even after a 257% share price rise in 2013, according to a set of analyst upgrades of the restructuring big box electronics retailer.
In two Monday upgrades both Jefferies and UBS (UBS) said Best Buy shares could continue to rise as the company realigns its store space toward store-in-store partnerships with Microsoft (MSFT), Google (GOOG) and Samsung, and begins to introduce kiosks for Google and Amazon (AMZN) products. The company is also in the process of reducing store space devoted for music and DVD sales and distributing it to higher margin categories such as home appliances.
UBS upgraded Best Buy to a "buy" rating with a $49 a share price target. Jefferies, which already had a "buy" rating for Best Buy, increased its price target for the company to $52 from $40 a share a share.
Best Buy shares were gaining over 2% in Monday pre-market trading. The company's stock has risen over 257% in 2013, as of Friday's close, as CEO Hubert Joly has been able to execute ahead of schedule on cost-cutting initiatives and sign store-space partnerships with large tech hardware manufacturers.
Best Buy calls its cost-cutting initiative and re-deployment of store space a "Renew Blue" program.
"Best Buy's shares have been on some ride over the past year, but we think the journey is not over," Michael Lasser, a UBS analyst wrote, in a Monday upgrade.