Is Best Buy Really Set for A Turnaround?
With Best Buy’s (NYSE:BBY) quarterly earnings report not scheduled to be released for another week, it’s hard to pinpoint how well the company is doing. The electronic retailer’s last quarter was abysmal, and since then analysts and company executives have continued to place blame on the practice of showrooming for its poor results, making the possibility of a turnaround seem highly unlikely. Yet, shares of Best Buy are up 45 percent so far this year, and the company has scored several upgrades recently.
February 19 could be a significant day in Best Buy’s history if analysts are correct in their predictions. On that day, both Barclays Capital and Stifel Nicolaus lifted their ratings on the company. In the case that 2013 does prove to be a transitional year for the electronics retailer, then this pair of upgrades could come to represent a turning point in Wall Street’s sentiment.
Stifel Nicolaus analyst David Schick cited improved management and the increasingly competitive smartphone market for his positive outlook when he upgraded Best Buy from a Hold to Buy. In the research note, seen by Barron’s, the analyst also set a $23 price target for the company’s shares. Best Buy’s stock has been trading in the $15 to $16 range for most of February, and it has not traded at the $23-per-share level since early 2012…