Piper Jaffray Reiterates OW Rating, $39 PT on Best Buy

Piper Jaffray is reiterating its OW rating and $39 PT following Best Buy's BBY Q1 revenue and EPS beat. “While gross margin rate missed consensus expectations, we believe BBY is executing well in its promotion of computing, appliances and gaming, a strategy which will help the company gain share,” Piper Jaffray writes. “We also continue to believe the company looks attractive from a valuation perspective (~8.7x consensus fwd. EPS), a continued focus on capital allocation and easing comps in the remainder of F12.” Best Buy closed Tuesday at $30.13.