Jefferies Raises Best Buy (BBY) Price Target on Expanding Advertising Division

Core Viewpoint - Best Buy Co., Inc. is recognized as one of the top consumer electronics stocks to invest in, with Jefferies maintaining a Buy rating and raising the price target from $88 to $95 due to the company's strong financial performance driven by its expanding advertising division [1][2]. Financial Performance - Jefferies anticipates that Best Buy Ads will significantly influence the company's profit and loss statement over the next five or more years, potentially leading to an increase in annual gross margin instead of a contraction, which is a common concern among investors [2]. Business Model Evolution - The integration of the advertising segment into Best Buy's investment narrative is expected to alter what Jefferies describes as "outdated investor perceptions" regarding the company's business model, highlighting the potential of this new revenue stream [3]. Company Overview - Best Buy Co., Inc. is an American multinational retailer specializing in consumer electronics, offering a wide range of products and services. The company has established a robust online presence alongside its physical stores, which are integral to its omnichannel strategy [4].