Jefferies upgrades Best Buy on services push with $88 price target
Jefferies analyst Jonathan Matuszewski upgraded Best Buy to Buy from Hold and raised his price target for the shares to $88 from $72. Survey and data work suggest Best Buy's greater push toward services will drive long-term value and customer wallet share, Matuszewski tells investors in a research note. The analyst now has increased confidence in the company's In-Home Advisor initiative and the "upward trajectory of high-margin services that it feeds," including Total Tech Support. Matuszewski also thinks the consumer electronics cycle will be stronger than many believe and that Best Buy is well positioned to capitalize. After analyzing the company's share of voice for top consumer electronics products and phrases, the analyst believes "outsized share gains lie ahead, especially as pricing versus peers improves.