Best Buy Scores Upgrade From Wachovia

By IBTimes Staff Reporter | 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.

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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.