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Best Buy upgraded on potential Sears, Hhgregg store closures, analyst says

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A salesman carries a Best Buy shopping basket in San Francisco, California.
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Piper Jaffray raised its rating for Best Buy shares to overweight from neutral, saying the company's earnings results will come in above expectations in the coming year.

Best Buy's "competition fading will be a benefit to [sales] comps. We believe hhgregg (near-term) and Sears (long-term) issues present sales opportunities for BBY," analyst Peter Keith wrote in a note to clients Sunday. "For Sears, full shut down of all stores (not announced at this point) would equate to a 2 percent comp benefit, based on our math, primarily in the margin-accretive appliance category."

Sears Holdings shares are down by nearly 40 percent in the past year as investors grow concerned over the future of the embattled retailer. Electronics retailer Hhgregg filed for bankruptcy protection earlier this month.

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