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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"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."
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

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.
-
How Prepaid Verizon Phone Service Works and When It's a Smart ChoiceExplore the differences between Verizon Prepaid and Verizon Postpaid plans—costs, perks, flexibility, and when going prepaid makes sense.
-
Try This One-Minute Test to Uncover Hidden Health RisksFinding out this little-known fact about your body could reveal your risk of heart disease and more. It's a simple, free check for healthy aging.
-
Social Security Wisdom From a Financial Adviser Receiving Benefits HimselfYou don't know what you don't know, and with Social Security, that can be a costly problem for retirees — one that can last a lifetime.
-
Take It From a Tax Expert: The True Measure of Your Retirement Readiness Isn't the Size of Your Nest EggA sizable nest egg is a good start, but your plan should include two to five years of basic expenses in conservative, liquid accounts as a buffer against market volatility, inflation and taxes.
-
Dow Adds 472 Points After September CPI: Stock Market TodayIBM and Advanced Micro Devices created tailwinds for the main indexes after scoring a major quantum-computing win.
-
October Fed Meeting: Live Updates and CommentaryThe October Fed meeting is a key economic event, with Wall Street waiting to see what Fed Chair Powell & Co. will do about interest rates.
-
The Delayed September CPI Report is Out. Here's What it Signals for the Fed.The September CPI report showed that inflation remains tame – and all but confirms another rate cut from the Fed.
-
New Opportunity Zone Rules Triple Tax Benefits for Rural Investments: Here's Your 2027 StrategyNew IRS guidance just reshaped the opportunity zone landscape for 2027. Here's what high-net-worth investors need to know about the enhanced rural benefits.
-
Honeywell Leads Dow Higher: Stock Market TodayOil prices got a lift after the Treasury Department announced new sanctions on Russia's two largest oil companies.
-
The OBBB Ushers in a New Era of Energy Investing: What You Need to Know About Tax Breaks and MoreThe new tax law has changed the energy investing landscape with expanded incentives and permanent tax benefits for oil and gas production.