NEW YORK (TheStreet) -- Shares of Best Buy Co. (BBY) - Get Best Buy Co., Inc. Report were gaining 2.6% to $33.82 in morning trading Wednesday after analyst firms Jefferies and Raymond James released positive notes about the electronics retailer.

In a note to investors, Jefferies raised its price target for Best Buy to $50 from $49, maintaining its "buy" rating for the retailer.

"Product cycles are important, but conversion has been more important to BBY results," Jefferies analysts wrote. "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."

Raymond James upgraded Best Buy to "strong buy" from "market perform" on Wednesday, setting a price target of $40 for the company. The analyst firm said Best Buy's improvements are starting to offset the challenges that are currently facing the consumer electronics industry.

The analyst notes come a day after Best Buy's positive fiscal second quarter financial results.

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Best Buy declared a quarterly dividend of 23 cents a share on Wednesday morning. The dividend is payable on October 6 to all shareholders of record as of the close of business on September 15.

TheStreet Ratings team rates BEST BUY CO INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate BEST BUY CO INC (BBY) a HOLD. The primary factors that have impacted our rating are mixed – some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and disappointing return on equity."

You can view the full analysis from the report here: BBY Ratings Report

BBY data by YCharts

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