Shares of electronics retailer Best Buy (BBY) - Get Report  were rising 1.6% Wednesday after analysts at Jefferies upgraded the stock to buy from hold while also increasing their price target to $88 from $72. 

The price target represents a potential 20% upside from the stock's closing price Tuesday of $73.62. 

Jefferies is bullish on the company in light of its plans to become more of a service provider as well as a retailer. 

"We have increased confidence in Best Buy's In-Home Advisor initiative and the upward trajectory of high-margin services that it feeds, including [the on-call offering] Total Tech Support," analyst Jonathan Matuszewski wrote. "We believe efforts to fuse consumer electronics category expertise with health care tech services will be rewarded as a larger total addressable market crystallizes."

Matuszewski also increased the company's 2020 and 2021 EPS estimates to $5.78 per share and $6.30, due to the anticipation of the success of its services business.