(CercleFinance.com) – Best Buy shares rose sharply on Monday morning on the New York Stock Exchange, driven by an increase in recommendation from UBS analysts.
In a note released in the morning, UBS indicated that it had moved from a ‘neutral’ opinion to a purchase advice on the stock of the American distributor of consumer electronics.
The research firm explains that it perceives a favorable risk/return profile on the value thanks to several elements, starting with the prospect of an increase in household spending.
UBS also mentions the arrival of a next cycle of replacement of existing devices (a phenomenon which occurs according to it every four to seven years), the marketing of a series of innovations associated with AI and finally, growth in sales in new areas such as electric bicycles or furniture.
About two hours after the opening, the stock climbed more than 3.2%.
Its new target of 106 dollars, compared to 85 dollars previously, shows an upside potential of 21.5% compared to the stock price on Friday evening.
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