Best Buy Stock Boasts Solid Support

UBS upgraded BBY to “buy” from “neutral”

UBS upgraded Best Buy Co Inc (NYSE:BBY) to “buy” from “neutral,” with a price-target hike to $106 from $85. The analyst said shares of the electronics retailer are set to benefit  from new products and an appliance upgrade cycle. 

In response, Best Buy stock boasts a 3.7% premarket lead. The security is set to open at $90, its highest level since February 2023. While it recently broke out of a channel of lower lows on the charts, the stock is coming off of its ninth weekly loss in 11. Still, BBY boasts an 11.4% year-to-date and a 10.4% year-over-year lead.

Coming into today, the bulk of the brokerage bunch is still lukewarm on Best Buy stock. In fact, 12 of 22 analysts in coverage still carry a “hold” or worse recommendation, leaving room for more upgrades.

A short squeeze could also boost BBY. Short interest accounts for 7.2% of BBY’s available float, which would take shorts more than four days to cover at its average pace of trading. 

Options traders are in luck, as the equity sports affordably priced premiums at the moment. The stock’s Schaeffer’s Volatility Index (SVI) of 22% sits in the 10th percentile of its annual range, indicating options players are pricing in low volatility expectations for Best Buy stock. 

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