Best Buy and Nike were both upgraded today
The retail sector is taking center stage as the holiday season hits high gear. Today, the focus is on retail stocks Best Buy Co Inc (NYSE:BBY) and Nike Inc (NYSE:NKE) after notable upgrades this morning.
BBY is 2.6% higher to trade at $75.03 at last check, after Jefferies raised its rating to "buy" from "hold" and hiked its price target to $89 -- a 20% upside to last night's close. The Wall Street analyst believes the pandemic purchases' "replacement cycle" will begin soon, and improved store traffic shown in its third-quarter report should "more than offset slowing web traffic."
On the charts, Best Buy stock is testing $75, which has been an area of consolidation over the last few weeks that coincides with its 320-day moving average. Year-to-date, BBY is down 6.4%, but has tacked on 20% off its Nov. 10 annual low of $62.30.
Elsewhere, Nike stock is 2.3% higher to trade t $118.58, after Citi upgraded the blue-chip retailer to "buy" from "neutral," with a price target hike to $142 from $119. The brokerage firm cited lower freight charges, leaner inventory, fewer promotions, and a strong position in China. Citi said NKE is a "one-of-a-kind brand with visible margin recovery creates a favorable risk reward."
Nike stock is trading at its highest mark since late-April, guided higher by its ascending 20-day moving average. The shares have reclaimed their year-to-date breakeven level today, and are up 24% this quarter alone.