Best Buy shares jump on analyst endorsement
US retail chain sees stock climb 10% as videogame discount offers abound
US electronics retail giant Best Buy has seen its stock climb by almost 10 per cent in the past two days following a glowing assessment from analyst firm Piper Jaffray.
The company's share price went from USD 36.09 at the start of trading on Wednesday to USD 39.65 by close yesterday, a jump of 9.86 per cent in total.
"We have confidence in our increased Q2 estimates as our checks indicate an accelerating comp trend as the quarter progressed, driven by strength in mobile phones, computing and flat panel TVs," wrote analyst Mitchell Kaiser, according to SeekingAlpha, adjusting his target price upwards to USD 50.
The retailer is also in the process of offering key game discounts to its customers, with shoppers purchasing any full price Xbox 360 game then able to buy a second for half price.
The same offer will be applied to PlayStation 3 software next week, GamesIndustry.biz understands.