Best Buy climbs amid Samsung alliance optimism

theflyonthewall.com

Best Buy (BBY) is advancing after Samsung (SSNLF) said that it would open mini stores inside Best Buy stores. WHAT'S NEW: Samsung will launch small stores in more than 1,400 Best Buy locations around the U.S., the Korean tech company announced earlier today. By early May, boutique stores will be launched in 900 Best Buy locations, and the rest of the mini stores be operating by early summer, Samsung added. Consumers will be able to buy all of Samsung's mobile products at the boutique shops, Samsung stated. ANALYST REACTION: In a note to clients, Oppenheimer analyst Brian Nagel wrote that the news was an "overall positive" for Best Buy. The deal could increase Best Buy's traffic and sales productivity, and it indicates that vendors' commitment to the retailer has strengthened, the analyst wrote. On a negative note, Apple may react to the deal by partnering more closely with Best Buy's competitors, placing Best Buy at a disadvantage when it comes to obtaining recently launched Apple products, added Nagel. He maintained a $22 price target and Perform rating on the shares. TODAY'S PRICE ACTION: In early afternoon trading, Best Buy surged $2.60, or 12%, to $24.25.

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