Best Buy (BBY) Stock Rising on Price Target Hike

NEW YORK (TheStreet) -- Shares of Best Buy Co. (BBY) are increasing 0.06% to $35.13 in Friday's early morning trading after analysts at Jefferies raised its price target to $49 from $46 and maintained their "buy" rating.

Analysts said that the company's market position has improved, shifting from stabilizing the business to playing offense as large pools of market share are up for grabs.

"Strong inventory management around port issues and good in-store execution of its new labor model translated to better than expected sales, which outpaced competitors," they added.

This action follows the company's first quarter results released yesterday. The company reported revenue of $8.56 billion, or 37 cents per share this quarter, compared to revenue of $8.64 billion, or 35 cents per share in the same quarter last year.

While revenue decreased from the same quarter a year ago, it still beat consensus estimates. Analysts had expected earnings of 29 cents per share and a revenue of $8.46 billion, according to analysts at Thomson Reuters.

Best Buy president and CEO Hubert Joly said yesterday during the earnings call that the earnings exceeded their expectations during the quarter due to a stronger-than-expected performance in the domestic business.

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

"We rate BEST BUY CO INC (BBY) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, solid stock price performance, attractive valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins."

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