This morning’s pre-market opening chatter includes talk about a new upgrade and downgrade for Best Buy.
A Piper Jaffray analyst upgraded the retailer’s stock rating to “buy” from “neutral” and predicted its price would rise as much as 35 percent in the next year, the Associated Press reports.
The analyst’s note says the bankruptcy and store closings by rival Circuit City presents an opportunity for Best Buy.
Meanwhile, a credit-rating agency has downgraded Best Buy to “deteriorating” from “stable,” Barron’s Tech Trader Daily reports.
A Gimme Credit analyst said in the long-run Best Buy should benefit from the collapse of its competitors, but for now it faces the same challenges as other retailers: “weaker sales, strained liquidity and contracting margins.”
The credit report also notes that Best Buy is increasing its business risk with its aggresive expansion into Europe.
Best Buy reports its third-quarter financial results on Tuesday.