GO
Loading...

Best Buy, Best of Breed: Pro

Despite a share price up almost 134 percent year to date, Best Buy could have farther to climb, David Magee of SunTrust Robinson Humphrey said Monday.

"It's not easy to upgrade a stock when it's had this kind of move," he said. "At the same time, when you see the valuation, it's still not expensive, and all the things this company is doing to become more relevant to the customers, we think it's got a major second leg ahead of us here."

Shares of Best Buy closed at $27.36, down 19 cents.

On CNBC's "Fast Money," Magee noted that the electronics chain had fared well against increased online competition, as well as a recession, calling it "best of breed in the space, which is poised to grow faster."

Best Buy's valuation could see a climb, he added.

"We don't think it's unreasonable to expect low- to mid-teens again," Magee said, adding that the stock could hit $25 per share.

While television technology doesn't appear to be introducing new features to lure consumers back, he did see one potential catalyst in real estate.

"If housing continues to improve, that's going to pull along this sector as people buy upgrade TVs or add TVs as they find new homes," he said.

Symbol
Price
 
Change
%Change
S&P 500
---
BBY
---

Featured

Contact Fast Money

Halftime Report