Shares of Best Buy (BBY) are getting a modest boost today, possibly from an upgrade by FBR Capital Markets to Market Perform from Underperform. The shift to neutral isn’t exactly high praise; Stephen Chick is revising his rating and price target (to $39 from $36) as a preventive measure of sorts, following his bearish turn in March: “We want to be more neutral-positioned here with the stock until we can attain better clarity as to whether Best Buy would, in fact, have a strategic interest in RadioShack (RSH).”
There has been some recent speculation about that combination.
Chick adds: “We derive some pretty significant EPS accretion for Best Buy under an RadioShack acquisition scenario, and it is difficult for us to assess how the equity market would react: balancing the unfavorable inherent risk of integration versus the favorable math surrounding EPS accretion and visible acquisition synergies.”
In today’s session:
- Best Buy is up 43 cents, or 1%, to $45.32.
- RadioShack is down 34 cents, or 1.5% to $23.15
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