Best Buy Upped to “Buy” at Goldman Sachs (BBY)

in Gold Gold Investment by admin — March 19, 2010 6:04 am | no comments

Electronics retailers Best Buy Co., Inc. ( BBY ) caught a big upgrade on Friday from analysts at Goldman Sachs. The analyst lifted its rating on BBY to “Buy” from “Neutral,” citing “optionality on product cycle recovery, macro recovery, and capital allocation.” Goldman also noted that the stock is trading at a low multiple in relation to its peers, and boosted its price target to $47 from $44. Best Buy shares rose $1.50, or +3.7%, in premarket trading Friday. The Bottom Line We removed shares of BBY from our “recommended” list last May 13, when the stock was trading at $37.06. The company has a 1.38% dividend yield, based on last night’s closing stock price of $40.45. The stock has technical support in the $35 price target. If the shares can firm up, we see overhead resistance around the $43-$45 price levels. We would remain on the sidelines for now. Best Buy Co., Inc. ( BBY ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .