Piper Jaffray downgraded Best Buy (NYSE: BBY) from Overweight to Neutral with a price target of $31.00 (from $34.00).

Analyst Peter J. Keith commented, "We are downgrading shares of BBY to Neutral from Overweight and lowering our price target to $31 ($34 prior). While we continue to have a very favorable opinion of the management team, who have improved execution across the enterprise, the consumer electronics product cycle backdrop has become remarkably tepid. We see downside risk to FY17 guidance if product cycles (beyond an iPhone launch) don't improve in 2H, and current valuation is line with historical mean/median. Cash return to shareholders likely supports valuation at current levels, but lack of EBITDA growth should limit opportunity for valuation upside. We would look to become more positive if intriguing product cycles begin to emerge, but we see nothing on the horizon that warrants putting new money to work at the current valuation."

The firm raised FY17 EPS from $2.85 to $2.96 and FY18 EPS from $2.95 to $3.20.

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Shares of Best Buy closed at $32.24 yesterday.