Piper Jaffray analyst Peter Keith lowered estimates and his price target on Best Buy (NYSE: BBY) to $35.00 (from $45.00) but retained an Overweight rating into Q2 results next Tuesday.

Keith commented, "We are modestly cautious into BBY's Q2 earnings on Tuesday. Our concern is not on Q2 comp or EPS, as we expect inline results but rather potential commentary on the 2H comp outlook. We have particular concern on the Q3 outlook given what we see as weak PC demand trends against a very tough compare (and home computing is BBY's largest category). We are lowering our comp and EPS estimates for Q3 and Q4 below consensus and expect cautious comments from BBY next week."

He added, "Maintaining our OW rating on BBY in 2015 has been the wrong call, but we are staying at OW for now (despite nearterm caution) due to: (1) Strong FCF and cash position; (2) Tangible GM drivers; (3) Easy SG&A compares for CY16; and (4) an abnormally low relative valuation."

The firm lowered FY 25016 EPS from $2.51 to $2.44 and FY 2017 EPS from $2.96 to $2.77.

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 $31.43 yesterday.