Tech Retailers: Analysts Choose Their "Best Buy"
Best Buy and Circuit City Stores each report earnings Wednesday. Which tech-toy titan will prove the victor tomorrow -- and in the future? Analysts from Piper Jaffray and UBS Securities joined CNBC's Bill Griffeth to pick their winner.
UBS' Brian Nagel told "Power Lunch" viewers that Best Buy is clearly "emerging as the leader" -- but added that results for both companies will be "better than the market thinks" over the next few quarters. He called the stocks of both "very attractive at this level."
Mitchel Kaiser, who covers retail for Piper Jaffray, declared his agreement: "We prefer Best Buy." He noted that Piper downgraded Circuit City early last month, after seeing a "pretty significant share shift" and the exodus of then-CFO Mike Foss to Petco.
Kaiser also said he likes Best Buy's signature Geek Squad service.
Mitchell Kaiser -- The analyst's employer, Piper Jaffray, received non-investment banking securities-related compensation from Best Buy in the last 12 months.
Brian Nagel -- The analyst's employer, UBS Securities, holds a significant number of shares in Circuit City. The analyst and member(s) of his family own shares in Best Buy, which is also an investment banking client of UBS. Within the past 12 months, UBS has received compensation from Best Buy.