Best Buy 's new membership program should drive sales and profit for the electronics retailer, Piper Sandler said in a note Monday, raising its forecast on the stock. Piper Sandler hiked its price target to $150 from $146 per share. The new projection implies 43.2% upside from Best Buy's closing price on Friday. The firm reiterated its overweight rating on the stock. "BBY is quickly becoming one of our top ideas under coverage," Piper Sandler's Peter Keith and Robert Friedner said. The new membership program Best Buy Total Tech is "one of the most intriguing initiatives BBY has launched in 5+ years," the analysts said. Total Tech could boost comparable store sales by 3% and earnings per share by 5% to 8% each year for the next two years, according to Piper Sandler's analysis. "Ultimately, we expect the membership program to drive incremental purchase activity by members," the analysts said. What's more, Best Buy shares are trading at a significant discount versus its peers, making the stock relatively cheap, the analysts added. Shares of Best Buy have underperformed the market this year, up roughly 5% in 2021 compared with the S & P 500's 18.6% gain during the period. —CNBC's Michael Bloom contributed reporting.
