On Wednesday an analyst at Stifel Nicolaus noted that he is optimistic on Best Buy Co., Inc. (BBY) after a positive view of plans to revamp store layouts.
Stifel Nicolaus analysts David Schick commented that he thinks the new, open floor plan upgrades are a big step up from the old store layout, which could help sales staff close bigger deals.
Additionally, Schick noted that companies like Microsoft (MSFT) and Sony (SNE) are interested in opening “store-within-a-store” segments which could also help improve the financial situation of Best Buy.
Schick commented, “We believe store traffic is up (vs. pre-remodel) and Magnolia and Pacific Sales Kitchen & Bath are seeing strong trends in the small sample of stores we have visited. The stores have significantly less exposure to declining categories (such as CDs and DVDs). All in all we see this work as a good development for BBY….Magnolia section is a much bigger departure from BBY stores into high-end home theater. Like kitchen & bath discussed above, presentation of merchandise feels more professional and higher quality.”
Stifel Nicolaus maintains a “Hold” rating on Best Buy.
Best Buy shares were mostly flat in mornings trading on Wednesday. The stock is down -50.62% year-to-date.
The Bottom Line
Shares of Best Buy (BBY) have a 5.88% dividend yield, based on Monday’s closing stock price of $11.57. The stock has technical support in the $10 price area. If the shares can firm up, we see overhead resistance around the $13-$15 price levels.
Best Buy Co., Inc. [[BBY] is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.9 out of 5 stars.
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