Jefferies upgraded Best Buy (NYSE: BBY [FREE Stock Trend Analysis]) from Hold to Buy and raised the price target from $13.00 to $24.00.

Jefferies said, "Seven reasons to own Best Buy: 1) New capable management with expertise in turnarounds and growth businesses both on land and online; 2) Clear cost-cutting opportunities and an evolving plan to go after them; 3) Strong upside to EPS as we look to Q4 of this year and beyond; 4) Expectations have been set low for 1H on heavy investment spending, giving management more flexibility; 5) Big investments are being made to improve the multi-channel experience, which should result in share gains; 6) Potential sale of Europe and China operations could fetch $600-900 million in our estimation or 10-15% of BBY's market capitalization; 7) Shifting investor sentiment could lead to multiple expansion as management shows early signs of success."

Best Buy closed at $18.40 on Tuesday.


Copyright Benzinga. All rights reserved.