Jefferies upgrades its recommendation on Best Buy from 'hold' to 'buy', with a price target raised from $69 to $89, as it expects the post-pandemic replacement cycle to start soon, and is reassured about market share.
While acknowledging that '2024 will not be a record year', the broker considers investors' expectations for a mid-single-digit percentage decline in like-for-like sales to be 'conservative'.
'Demand linked to growing consumer interest in AI (artificial intelligence) will be the icing on the cake', adds Jefferies, which also points to an attractive valuation discount to the market.
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Best Buy Co., Inc. specializes in retail distribution of consumer electronic products and entertainment products. The group provides primarily computing products (computers, peripherals, software), hi-fi products (televisions, DVD players, etc.), cameras, mobile phones, audio systems and home appliances (washers, refrigerators, etc.). Net sales break down by area of activity as follows:
- the United States (92.4%): activity insured, at 28/01/2023, through a network of 978 stores distributed by names mainly between Best Buy (925) and Pacific Sales (20);
- Canada (7.6%): 160 stores distributed between Best Buy (127) and Best Buy Mobile (33).
Products are also marketed through Websites (primarily Bestbuy.com, BestBuyMobile.com, GeekSquad.com, MagnoliaAV.com, PacificSales.com, and FutureShop.ca).
BEST BUY CO., INC. 
