Loop Capital says invest in Best Buy to capitalise on housing market rebound
- Loop Capital analyst sees upside in Best Buy to $93 per share.
- Anthony Chukumba sees $BBY as a 'stealth housing play'.
- Best Buy is already up roughly 25% versus its November low.
Best Buy Co Inc (NYSE: BBY) is in the green at writing after a senior Loop Capital analyst issued a bullish note in its favour.
Best Buy stock has upside to $93
Copy link to sectionAnthony Chukumba reiterated his “buy” rating on the electronics retailer this morning and raised his price to $93 which suggests about a 20% upside from here.
The analyst dubbed Best Buy stock a “stealth housing play” in his research note today because he expects sales of appliances and television sets to pop as renovations and upgrades rebound.
The news arrives only weeks after $BBY reported its financial results for the fourth quarter that topped Street estimates (find out more).
Shares of the $17 billion company based out of Richfield, Minnesota are already up close to 25% versus their low in early November.
$BBY is inexpensive at current multiple
Copy link to sectionAnthony Chukumba expects Best Buy stock to benefit once mortgage rates start to fall as well. His research note reads:
[Housing market] is encouraging given Fed rate cut campaign is yet to commence. $BBY offers an attractive derivative play on improved home sales given its inexpensive relation valuation.
The New York listed firm is currently trading at about 13 times its estimated earnings for 2024 versus its peer between 19 times to over 62 times.
Best Buy reported $169 million of restructuring charges in Q4 related to layoffs aimed at right-sizing resources. It did not, however, reveal the exact number of employees that were let go. Best Buy shares currently pay a dividend yield of 4.84%.
