UPDATE: Credit Suisse Downgrades Best Buy; Lowers PT

According to a research report published this morning, Credit Suisse has downgraded Best Buy BBY from Outperform to Neutral, and lowered PT from $32 to $20. In the report, Credit Suisse said, "We are reducing our Best Buy rating from Outperform to Neutral as the non-operating story seems to be creating too much of a distraction at a time that all hands need to be on deck. We are also lowering our target price to $20 from $32, reflecting a P/E multiple of 5.5 times our '12 EPS estimate of $3.65. When we first heard that Mr. Dunn was leaving, while we respected what he had accomplished at the company, we took it as a positive signal that the Board realized that a new direction was needed. Given the strong free cash flow and the potential to improve results through store shrinkage and a better Internet presence, we thought that there was visible upside to this story." Best Buy closed yesterday at $19.94.