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

Best Buy Co., Inc. (NYSE:BBY) ranks among the best consumer electronics stocks to buy now. Jefferies maintained its Buy rating on Best Buy Co., Inc. (NYSE:BBY) and increased its price target from $88 to $95 on October 8. The firm’s favorable review of Best Buy’s financial performance was mainly driven by the company’s expanding advertising division.

Over the next five or more years, Jefferies anticipates that Best Buy Ads will have “a rising sphere of influence” on the company’s profit and loss statement, potentially enabling it to increase its annual gross margin rather than contracting it as many investors believe.

As the advertising section becomes increasingly woven into the investment narrative, the firm believes this new revenue stream will eventually change what it refers to as “outdated investor perceptions” of Best Buy’s business model.

Best Buy Co., Inc. (NYSE:BBY) is an American multinational retailer specializing in consumer electronics, offering a broad range of products and related services. Along with its physical stores, the company has built a strong online presence, with both channels playing a key role in its omnichannel strategy.

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Disclosure: None. This article is originally published at Insider Monkey.