Jefferies Downgrades Best Buy to Hold (BBY)

Analysts at Jefferies have downgraded Best Buy BBY to Hold from Buy. The analysts said, "While Best Buy shares look cheap, they may stay cheap as we think sales trends may be eroding further from Q1 levels." Consumer electronic sales have been weak and there are concerns that Q2 sales will be disappointing once again. Jefferies lowered Best Buy's price target from $50.00 to $36.00. The new price target is based on a 12x multiple on a FY11 EPS estimate of $3.04. Shares of BBY are currently trading at $34.40.