(Updated to include the analyst's commentary)

Wedbush raised its price target on Best Buy (BBY) to $80 from $75 after the company delivered solid Q3 results, with both comps and EPS surpassing expectations.

Although guidance came in below expectations-largely reflecting the quarter's performance and the company's increased investments in sponsored ads and Marketplace-the market appeared to look past the cautious outlook. However, the brokerage remains more cautious on Q4, citing the potential for a highly promotional holiday season and weakening consumer confidence.

Longer term, the brokerage views the company's ongoing investments as well warranted. Sponsored ads provide a high-margin opportunity to enhance growth in the core business, especially as the US marketplace initiatives ramps.

Best Buy has an average rating of Hold and mean price target of $83.25, according to analysts polled by FactSet.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 83.27, Change: +3.61, Percent Change: +4.53