Is it possible that investors are not giving enough credit to Best Buy ( BBY)?

At least one Oppenheimer analyst thinks so, and he upgraded the electronics retailer an on Monday, saying the stock is undervalued.

The news sent shares up 2% to $33.47 in morning trading.

"We look upon the concerns that have dogged shares lately as largely overblown and believe the market has been far too quick to dismiss the potential benefits for (Best Buy) from Circuit City's demise," analyst Brian Nagel wrote in a research note.

Shares of the company have fallen nearly 20% since early June, closing on Friday at $32.77.

Best Buy has been struggling to gain market share from Circuit City's elimination of 567 stores in March, as discounters such as Wal-Mart Stores ( WMT) and Costco ( COST) have upped their selection of consumer electronics.

But with the appointment of Brian Dunn as CEO last month, the company is apparently working to regain its premier spot in the space.

Already the retailer has teamed up with TiVo in a marketing deal.

Dunn has said he will work to bolster market share in local communities by becoming the go-to destination for digital solutions and "connectivity."
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