Best Buy (BBY)’s stock had its rating restated by research analyst at Bank of America (BAC) in a report released on Thursday.
BofA’s analyst Denise Chai reiterated her ‘Buy’ rating and $36 price target on Best Buy shares following the company’s first quarter 2015 $0.33 EPS beat, which was marginally better than the $0.32 consensus. Including one time items, 1Q’15 earnings came in at $1.31 p/sh, considerably higher from earnings of $0.29 p/sh reported in the same period a year ago. The firm said momentum is building into Q4.
Chai called Best Buy’s Q1 [via Streetinsider]”another quarter of strong execution and cost reductions ($860mn since 1Q13) and substantial progress on initiatives such as ship from store.” The analyst also said she expects “an improvement in 4Q” and more importantly, she believes “BBY is increasingly well positioned to accelerate EPS growth.”
Shares in the $9.4 billion company rose more than 3 percent on Friday to close at $27.01. They’re now up 3.76% on a y/y basis and off about 40% from their Nov 13, 2013 $40.66 52-week high. The T12 revenue at BBY is $42.10 billion. Best Buy’s PEG ratio is 0.74.
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