AG Edwards Upgrades Best Buy

Analyst Brian Postol believes the electronics retailer's customer-centric models is providing a foundation to further differentiate the company away from peers

AG Edwards upgrades electronics retailer Best Buy (BBY ) to buy from hold.

Analyst Brian Postol says he upgrades on the belief pieces are in place for on-going acceleration. Over the next four quarters, he says Best Buy will be up against much easier comparables with average same-store sales of 3.7%, vs. previous four quarters of 8.5%.

He says the company's transformation to customer-centric model is providing the foundation to further differentiate away from peers. He notes converted customer centricity stores have posted, on average, high single to low-double digit increase in comparable sales over aggregate store base.

Postol ups his $3.08 fiscal 2006 (ending February) earnings per share estimate to $3.33 and $3.64 fiscal 2007 to $3.90. He has a $78 target.

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