Best Buy shares jumped an impressive 9 percent Monday, closing at nearly $30 a share.
Minnesota Public Radio reported that the fine showing is likely the result of a confident report from an investment firm. Analysts at Credit Suisse predicted the Richfield-based retailer's stock could keep climbing to $40 a share.
The Star Tribune reports that CEO Hubert Joly and his team can take the credit for Wall Street's upbeat take and Best Buy's turnaround., describing the company as 'the toast of Wall Street.' Under the new leadership, the company has been able to boost revenue and profits by cutting costs and increasing sales.
MPR noted that Best Buy is the only remaining power player among traditional consumer electronics retailers.
The newspaper report suggested that investors also appreciate Best Buy's expanded partnerships with Samsung and Microsoft that have created “store-within-a-store” concepts inside the big box.
But analysts cautioned that this enthusiasm might complicate Best Buy’s fragile recovery if it can’t meet such heightened expectations.
Just last December, Best Buy's stock was a weak $12 a share. Now Best Buy is the top-performing stock in the S&P 500 index.