Jefferies Raises Price target on Best Buy (BBY) Following a Conversation with Management

Jefferies reiterated a Buy rating on Best Buy (NYSE: BBY), and raised the price target to $50.00 (from $49.00), following a conversation with management. Based on the conversations with management, analyst Daniel Binder believes that initiatives aimed at improving conversion are still ramping.

Binder commented, "Product cycles are important, but conversion has been more important to BBY results. In an industry where in-store comps have been difficult to achieve, BBY is showing increases due in part to the implementation of a new labor model and larger cube purchases like appliances and TVs. Online conversion is better too as shipping times improve. Things in motion tend to stay in motion, so we expect improved sales execution to benefit 2H."

For an analyst ratings summary and ratings history on Best Buy click here. For more ratings news on Best Buy click here.

Shares of Best Buy closed at $32.95 yesterday.

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