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Best Buy

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could be a bust, analysts say, when it reports its second-quarter earnings on Tuesday.

The electronic retail was downgraded to perform from outperform on Friday by Oppenheimer analyst Brian Nagel, who notes that shares in Best Buy are trading at the top of their 52-week range and predicts that the company could continue to see weak sales.

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Shares of the company are up 17% since July and 43% year-to-date.

"Rising market expectations leave little room for additional upside to forecasts in the third and fourth quarter," Nagel wrote.

He also said that the company's second-quarter earnings results will most likely not be a positive catalyst for shares. While the company has been able to pick up shoppers from Circuit City's bankruptcy, it is still struggling as consumers cut back on big-ticket purchases.

Earlier in the month,

Best Buy said it will only open 22 new stores during its third quarter

, fewer than the approximately 46 locations it opened the same time last year.

But Citi analyst Kate McShane says its looks like Best Buy has gained market share during the quarter, most notably in televisions and mobile phones.

"We believe Best Buy is continuing to strengthen its presence in lower prices TVs through its Insignia and Dynex products, which are designed to compete with lower priced TV brands such as Vizio and Sansui at discounters," McShane wrote in a note on Monday.

Best Buy is managing to remain competitive against discounters like

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In the first quarter, Best Buy profit fell to $153 million, or 36 cents a share, from $179 million, or 43 cents, in the year-earlier period. Excluding restructuring charges, earnings were 42 cents a share, topping analysts' forecast of 34 cents.

Revenue rose 12% to $10.1 billion, while same-store sales sank 6.2%.

Analysts expect the company to earn 41 cents a share in the second quarter, and forecast a 5.9% drop in same-store sales.

Shares of Best Buy are down slightly, by 0.7%, to $39.48 in morning trading.

-- Reported by Jeanine Poggi in New York

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