Company Spotlight: Best Buy

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Best Buy stock rose Monday after a financial analyst at Barclays increased his price target for the fifth time this year.

Best Buy stock rose Monday after a financial analyst at Barclays increased his price target for the fifth time this year.  FILE/ASSOCIATED PRESS
FILE/ASSOCIATED PRESS
Best Buy stock rose Monday after a financial analyst at Barclays increased his price target for the fifth time this year.

Analyst Alan Rifkin increased his price target on Best Buy’s shares to $50 from $38. He also raised his 2014 earnings estimate to $2.75 from $2.65 per share on expected benefits from cost cutting. Rifkin’s forecast is above the $2.70 per share average that analysts polled by FactSet were expecting.

Best Buy has been shuttering underperforming stores and revamping others. Under CEO Hubert Joly, the company has instituted a price-matching policy, opened more in-store areas for manufacturers such as Apple and Samsung and invested more to train employees.

Rifkin said in a research note that he believes further improvement is possible for Best Buy and that the company will surpass its goal of cutting $725 million in costs.

THE STOCK

Best Buy (BBY)

Monday’s close: 38.89 ▲ 0.59, or 1.54%

52-week range: $11-39

Price-earnings ratio*: Lost money

Total return YTD: 234%

3-year**: 3%

10-year**: 3%

Market value: $13.3 billion

Note: Total returns through Sept. 23

* Trailing 12 months; ** Annualized

Source: FactSet, Associated Press


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