With improved margins, growing share and new products, Best Buy (NYSE:BBY) looks like they'll have a strong Christmas sales season, according to Barclays (NYSE:BCS).
"Over the past year, Best Buy has repeatedly characterized the consumer spending environment as episodic and we think that will work in its favor over the holidays. During this time, we think an abundance of new products, share gains, and positive margin trends will enable the company to achieve solid results, which could push estimates higher for this year and next. Sentiment has become more balanced in recent months, but the stock is still not particularly expensive, in our view. Therefore, we think the company's risk reward still leans to the upside," said Barclays.
Barclays reiterated their "Overweight" rating on Best Buy. They closed Monday at $44.86, suring by $1.32, or 3.03 percent. Barclays has a price target of $51 on the retailer, increasing it from $49.
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