Jefferies Reiterates Hold Rating On Best Buy

Analysts at Jefferies & Co. released a note on Best Buy (NYSE: BBY) today, reiterating their Hold rating and $33 price target. During Friday's trading session, the stock has gained 0.37% to $32.24. James Muehlbauer, Best Buy's CFO, spoke at the Jefferies 2011 Global Consumer Conference.

According to Muehlbauer, square footage reduction tests at Best Buy locations have yielded positive results, with sales and gross margin dollars remaining the same. The company did not sublet the reduced square footage with these tests, but the sublet option would make the economics of reducing square footage attractive.

The CFO also talked about new gaming trade-in centers at Best Buy stores, which will be rolled out throughout the company at the end of July. The move is designed to attract core gamers, which the company views as potential customers for big ticket consumer electronics items as they get older.