Piper Jaffray Lowers Revenue Estimate on Best Buy

Piper Jaffray is out with its report on Best Buy BBY after lowering revenue estimates on BBY. In a note to clients, Piper Jaffray writes, "We are lowering our 2H revenue estimate in front of BBY's Q3 earnings report on 12/14/10 based on the belief that weakness in TV and appliance trends continued through Q3. However, we believe that November sales of tablet computers, eReaders and mobile phones were strong which carry a higher GM rate but put some pressure on average ticket. We continue to like BBY based on improving gross margins, better capital allocation and a compelling valuation of 11.1x forward P/E and we reiterate our OW rating and $52 PT." BBY closed yesterday at $42.00.