UPDATE: JP Morgan Upgrades Best Buy to Overweight on Valuation

In a report published by JP Morgan, analyst Christopher Horvers Upgraded Best Buy

from not rated to Overweight with a $29 price target. JP Morgan reported that, “Following a period of restriction, we are moving to an Overweight rating and a December 2013 price target of $29 (Neutral rating and December 2012 price target of $25 prior to restriction) from a Not Rated designation. Our rating is based on the following: (1) having the right management team that can drive “self-help” financial improvement; (2) BBY's ongoing efforts to regain price and assortment leadership after yielding that mantle to AMZN (covered by J.P. Morgan analyst Doug Anmuth) in recent years combined with a leveling of the tax playing field; (3) the high correlation of TVs and appliances to housing; and (4) valuation. Financially, after years of conflicting directions of comp/gross margin performance (which resulted in significant downward EPS revisions), we see second derivative improvement while CEO Jolly and CFO McCollam drive cost efficiencies in the COGS and SG&A lines. While the stock has run off the bottom, we note the price is still down from a high of $27.51 roughly one year ago.” Shares of Best Buy closed at $21.45 on Friday.