The company’s stock was up just over 1.5% on Monday morning.
On Monday, Guggenheim analysts initiated Best Buy with a buy rating and an $80 price target. Analyst Steven Forbes said the company is “one of the most undervalued stories in large-cap retail.”
This is more good news for Best Buy, which has experienced a major turnaround in the past three years. Three years ago, the company’s shares trailed as low as $31 but are up nearly 40% in 2019 alone.
Things to expect from Best Buy
According to Guggenheim, it’s the company’s ability to innovate and be strategic that give it such solid long-term growth prospects. Here are three things to look for from Best Buy in the coming years.
The company brought on a new CEO
Best Buy’s massive turnaround happened under its former CEO Hubert Joly. Joly was able to transform the company into a competitive retailer both online and offline.
The company’s new CEO Corie Barry took over in June. Joly took on the role of executive chairman and continues to offer guidance. It remains to be seen whether Barry can take the company to the next stage of its transformation.
The company forms partnerships with its competitors
There is a lot of competition in the electronics business and Best Buy could have easily been buried by competitors like Apple and Amazon. But instead, Best Buy has formed partnerships with many of these companies. For instance, Best Buy is the exclusive seller for a line of Amazon-branded Fire TVs.
Best Buy focused on the connected fitness market
Wearable fitness trackers like FitBit and the Apple Watch have given consumers increased data to be able to improve and track their health. And fitness equipment is becoming increasingly advanced as well.
In an effort to tap into this market, Best Buy began selling connected fitness equipment to consumers. This was a smart move for the company because it allows it to substantially widen its total addressable market.
Best Buy’s shares are down slightly from their price one year earlier and the company hasn’t yet been able to top its all-time stock high of $82 in 2018. Forbes says that it will be important for Best Buy to continue introducing new products and services if it wants to continue moving forward.