Piper Jaffray Lowering Price Target On Best Buy (BBY)

Piper Jaffray is lowering its price target on Best Buy (NYSE: BBY) to $47 from $53, as it sees weak earnings coming forth next week. Best Buy reports earnings on September 14. It is maintaining its Overweight rating. It is also lowering its earnings estimates.

In a research report, Piper Jaffray writes, "We are lowering our Q2E and F11E EPS in front of BBY's Q2 earnings announcement on 9/14/10 based on the belief that weak TV trends have continued into Q2. Recall in mid-June, BBY reiterated its $3.45 to $3.60 F11 guidance despite a weaker than expected Q1. Since that time period, we believe retail and TV sales in particular have been weak with macro-economic concerns weighing on the Consumer. Despite our lowered EPS est, we believe a guide-down is priced into the stock at current levels."

Piper Jaffray goes on to say, "Lowering F11 EPS from $3.52 to $3.28 vs. Current Guidance of $3.45 to $3.60. Additionally, we are lowering our 2H comp estimate domestically from +3% in Q3 to 0% and from +2% in Q4 to 0%."

Shares of Best Buy lost 15 cents yesterday to close at $33.54, a loss of 0.5%.

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