Shares of Best Buy (BBY - Get Report) are higher nearly 40% year-to-date largely spurred by its stronger-than-expected first-quarter financial results, but Loop Capital analyst Anthony Chukumba thinks there is more room to run.

Chukumba raised his price target on Best Buy to $72 and maintained his buy rating.

"While Best Buy has handily outperformed the broader market indices since the beginning of 2016, we believe the stock is still attractively valued compared to its appropriate peer group," Chukumba wrote.

He noted that, previously, Best Buy was thought of in the same valuation group as the "secularly challenged retailers" including GameStop (GME - Get Report)  and Staples (SPLS) .

However, now Best Buy should trade with "market leading, relatively slow growth retailers" such as Home Depot (HD - Get Report) and Walmart (WMT - Get Report) , Chukumba said.

"Best Buy compares favorably with Walmart across many fundamental performance metrics; for example, Best Buy has been posting much better operating margin expansion and earnings growth over the past several quarters. Thus, we believe at a minimum, Best Buy should trade in line with Walmart," Chukumba argued.

"We believe Walmart, which is one of the least expensive stocks in our 'market leading, relatively slow-growth retailers' peer group, provides a good "comp" for Best Buy," he continued.

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