Here's Why Best Buy Stock Could Rally Another 17%
Best Buy stock could continue to rally thanks to several positive catalysts and a leaner operating model, UBS says. Here's what you need to know.


Best Buy (BBY) stock is doing well on the price charts so far in 2024, up roughly 16% including Monday's jump of nearly 4%. While BBY has already had a great run this year, one Wall Street firm thinks shares can rally another 17% from here.
In a June 17 note, UBS Global Research analyst Michael Lasser upgraded Best Buy stock to Buy from Neutral (equivalent to Hold) and raised his price target on the consumer discretionary stock to a Street-high $106 from $85.
Lasser cites an improvement in housing trends that will drive sales of appliances, a pending electronics replacement cycle, higher levels of product innovation, including artificial intelligence (AI), and growing sales of new categories, including e-bikes and furniture.
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"Most likely, these factors should all come together to drive a nice recovery in BBY's sales in the back half of 2024 and into 2025," Lasser says. "Plus, it should be evident that BBY's market share tends to flourish at the earlier stages of a product cycle. BBY's restructuring efforts should lead to significant earnings torque as comparisons improve."
The analyst also makes note of Best Buy's high dividend yield, which currently sits at 4.3%, and could provide support should the shares pullback.
"While the stock has had a decent bounce off the bottom, we think there's more to go and increase our price target to $106," Lasser adds.
Many analysts think Best Buy stock is a Buy
UBS is just one of many firms with a bullish view on Best Buy stock. Of the 29 analysts following BBY stock tracked by S&P Global Market Intelligence, eight say it's a Strong Buy, three call it a Buy, 17 have it at Hold and one says it's a Sell. This works out to a consensus Buy recommendation.
Jefferies analyst Jonathan Matuszewski is among those with a Buy rating on the retailer and a $94 price target.
Matuszewski cites four main reasons for his Buy rating, including "a major replacement cycle for laptops" being around the corner, the upcoming debut of AI PCs driving increased interest, and the fact that "consumers are becoming aware that their Windows 10 operating system will lose support next year."
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Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
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