Best Buy upgraded to Buy from Sell at Citi

Citi double upgraded Best Buy to Buy from Sell with a price target of $100, up from $67. The analyst believes the company’s catalyst path looks positive from here with upside potential to both earnings and valuation based on tech replacement cycles underway, new artificial intelligence innovation providing incremental demand, and margin execution remaining solid. Last week’s Q1 earnings reported proved Best Buy’s gross margin execution remains best-in- class with company specific drivers able to offset external pressures like higher promotional activity, the analyst tells investors in a research note. The firm says the earnings print was a “thesis changer.”