Share values of Best Buy Co rose to its highest in the past two years after Credit Suisse issued an approval rating to the continued efforts by the globe's biggest electronics chain to restructure itself.
Credit Suisse granted Best Buy's stock with an 'outperform' rating. Alongside such rating is the recommended increase of the price target for the stock value from US$32 to US$40. Furthermore, the shares increase by as much as 7.7% to US$29.44, which is the highest value since July 2011.
CEO Hubert Joly took over the reins of the company last fall and under his leadership, Best Buy has been able to compete toe to toe with the prices of its online rivals. It also restructured its stores to dedicate more space for fast growing product categories, mainly electronic gadgets such as smartphones and tablets. It is also revamping store layouts and increasing employee training hours.
Aside from these, the company removed redundant managerial positions, cut down onjobs and closed non earning stores. Another move to cut costs is to sell off non-core assets of the retailer.
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