Best Buy have declared a new joint venture which sees Desjardins, through its Card and Payment Services business unit, acquiring both the Best Buy Canada and Future Shop private-label credit card portfolios, Marketwatch Daily said.
“Desjardins is proud to partner with Best Buy Canada Ltd., and contribute to their commitment to serving customers with the utmost care, ” said André Chatelain, managing vice-president and general manager of Desjardins Card and Payment Services. “We have no doubt that our financing solutions will further set Best Buy Canada, Ltd. apart in a highly competitive industry.”
Best Buy gained 1.33% and is at $39.61. The total traded volume was 2.94 million shares and market capitalization arrived at $13.88 billion. The stock has a 52-week high price of $40.03 and its 52-week low was recorded at $22.15, while it is trading in the range of $39.40 – $39.95. The beta of the stock is recorded at 1.90 and the EPS of the stock remained 2.91. The shares outstanding of the stock are 350.41 million, Marketwatch Daily said.
Best Buy shares rose after Goldman Sachs upgraded the retailer to “buy” from “neutral” with a price target of $45 a share. Goldman expects Best Buy to report solid holiday sales and an earnings beat for the fourth quarter and calls it “well-positioned” for 2015, Yahoo Finance said.
Shares of the retailer could rise 20 percent this year to $45 a share and even beyond, Barron’s reported in its Jan. 12 edition, Reuters said.
The electronics chain, which saw shares drop to under $12 a share in December 2012 from $40 in January 2010 on sales declines and deep losses, has benefited recently from a healthy allocation of Apple’s iPhone 6 and is poised to ride a major upgrade cycle in televisions, the Reuters report said.
However, the stock isn’t without risk. The retail sector remains in upheaval, and threats from online retailers, including Amazon.com, could threaten its profits, the Barron’s report added, Reuters said.
Cost-cutting measures along with an expanding number of stores have helped the retailer.
The company is expected to report holiday same-store sales on Thursday, and while management says to expect “flattish” results, the street is looking for a 0.8 percent increase, the Barron’s report said, according to Reuters.