Morgan Stanley Raises Price Target on Best Buy (BBY) Following EPS Beat

Morgan Stanley reiterated an Equalweight rating on Best Buy (NYSE: BBY), and raised the price target to $43.00 (from $35.00), following the company's 3Q earnings report. BBY reported a $0.15 beat in non-GAAP EPS compared to the Street's ($0.47) estimate.

Analyst Simeon Gutman commented, "Q3 non-GAAP EPS came in at $0.62, a +$0.15 beat vs. the Street ($0.47). BBY generated ~30% EBIT growth on a +1.8% comp. While this level of profit conversion is not sustainable, this was the kind of quarter that bulls have been hoping for. The +1.8% Q3 comp was above the Street's +1.0% estimate but in-line with market expectations. The real upside came from domestic GM, which rose 58 bps YoY. BBY clearly seems to have found its place within the consumer electronics segment, restoring credibility to the brand, managing margins well, and executing at a high level."

For an analyst ratings summary and ratings history on Best Buy click here. For more ratings news on Best Buy click here.

Shares of Best Buy closed at $45.99 yesterday.

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