Best Buy: stock rises, with UBS upgrade

(CercleFinance.com) - Best Buy shares rose sharply on Monday on the New York Stock Exchange, buoyed by a recommendation upgrade from analysts at UBS.


In a note released this morning, UBS said it had upgraded its "neutral" rating to "buy" on the US consumer electronics retailer's stock.

The broker explains that it sees a favourable risk/reward profile for the stock thanks to several factors, starting with the prospect of increased household spending.

UBS also points to the arrival of the next replacement cycle for existing appliances (a phenomenon it believes occurs every four to seven years), the introduction of a series of innovations associated with AI and, finally, sales growth in new areas such as electric bikes and home furnishings.

The stock closed up 4.6% at $91.3.

Its new target of $106, compared with $85 previously, shows upside potential of 21.5% relative to Friday evening's closing price.


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