Best Buy Scores Upgrade From Wachovia

 @ibtimes on November 19 2007 10:00 AM

Last year, my husband and I happened to be visiting Cincinnati for Thanksgiving. A breakfast date with my parents set for 9:30 a.m. Friday morning, we ventured out shortly after 6:00 to see what deals the electronics retailers had in store for us. At Best Buy , the line stretched out the door. An employee stood on a 12-foot ladder above the throngs of eager consumers, bellowing out the protocol. Another employee handed out maps of the store's layout so one could plan for efficient shopping. The check-out line stretched from the cash register at the front of the store, in a loop, to the back wall. I quickly decided the $2.95 DVD of My Best Friend's Wedding wasn't worth this amount of pain. Others, trying to score good deals on flat-screen TVs or other high-ticket items, were in for the long haul.

Just in time for another Black Friday, Wachovia has upgraded its opinion of BBY to outperform from market perform, saying the stock is valued between $55 and $58. The brokerage said a reason behind this upgrade was improved visibility into second-half trends in HD television sales.

In early trading, the stock has edged fractionally higher but remains between its 10-day and 20-day moving averages, around which the stock has been circling since early October. A longer-term view shows that BBY has been consolidating lower since last October, guided south by its 10-month moving average. On the plus side, the shares appear to be forming a bottom around the 44 level, which hasn't been breached in convincing fashion since early 2005.

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