Citigroup's double-upgrade to "buy" from "sell" comes off last week's earnings report
The shares of Best Buy Co Inc (NYSE:BBY) are up 1.1% to trade at $85.75 this morning, after the electronics retailer received a double-upgrade from Citigroup to "buy" from "sell," with a price-target hike to $100 from $67. In the bull note, the analyst in coverage noted upside from Best Buy's earnings and valuations, with tech replacement cycles underway and new artificial intelligence (AI) innovations boosting demand.
Guggenheim also chimed in today, adjusting its price objective up to $90 from $86. The majority of brokerage firms are still hesitant on Best Buy stock, with 14 carrying a "hold" or worse rating, which leaves room for more upgrades.
A bout of short covering could provide tailwinds as well. Short interest represents 8.1% of BBY's available float, and would take shorts more than five days to cover at its average pace of trading.
Out of the gate, BBY hit a new 12-month high of $86.49. Last week's 13.4% post-earnings bull gap helped the stock break a channel of lower lows and recent pressure from its 80-day moving average. Now, BBY boasts a roughly 17% year-over-year lead.