Analysts at Piper Jaffray believe that Best Buy Co., Inc. (BBY) is in the midst of a multi-year, management led turnaround. As such, the firm upgraded the electronics retailer and raised its price target.

The analysts upgraded BBY from “Neutral” to “Overweight” and now see shares reaching $26, up from the previous target of $16. This target suggests a 29% upside to Friday’s closing price of $20.17.

A Piper Jaffray analyst commented, “We are upgrading shares of BBY to Overweight and increasing our price target from $16 to $26 as we believe new management is in the very early stages of a multi-year turnaround process that could drive substantial improvement to operating margin, ROIC and EPS. Importantly, we do not see the turnaround purely as a cost take-out story, as we see distinct drivers to both domestic gross margin and sales which, if executed upon successfully, could cause a significant upward re-valuation of BBY shares on top of an impressive run YTD.”

Best Buy shares were up 35 cents, or +1.74%, during pre-market trading on Monday. The stock is down -18.57% over the past twelve months.

The Bottom Line
Shares of Best Buy (BBY) have a dividend yield of 3.37% based on Friday’s closing price of $20.17 and the company’s annualized dividend payout of 68 cents per share.

Best Buy Co., Inc. (BBY) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.9 out of 5 stars.

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