Best Buy (BBY) Is a Good Buy

In a recently released report, Credit Suisse (NSYE: CS) has rated Best Buy (NYSE: BBY) as an ‘Outperformer’.

Best Buy is slated to report its 3QY09 earnings on Dec. 15. Best Buy has a number of factors in its favor. It is likely to benefit from the absence of key competitors such as Circuit City (OTC: CCTQY).

Therefore, Credit Suisse has raised its EPS estimates for Y2010 to $2.95. Following the positive trend, Best Buy is expected to witness growing sales volume. However, the market has already taken this fact into account. Therefore, the margins will be the key area to focus on.

Best Buy is expected to maintain its margin, thanks to tighter inventories, MAP pricing and less competition. Credit Suisse states that, if Best Buy beats the market expectations, it is also expected to raise the guidance for next year. Credit Suisse has given a 12-months price target of $46.