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Best Buy (NYSE:BBY) shares are gaining ground Wednesday following upbeat comments on the electronics retailer from Piper Jaffray analyst Mitchell Kaiser.

Kaiser Wednesday repeated his Overweight rating on the stock, lifting his price target to $50, from $42. He also raised his EPS estimate for the February 2010 fiscal year to $2.94, from $2.80; for FY 2011 he goes to $3.30, from $3.13.

Kaiser writes in a research notes that comp store sales are improving: he now sees FY Q2 comps down 4.8%, while the Street sees a 6.1% drop. He expects August quarter EPS of 44 cents, ahead of the Street at 40 cents. “We have confidence in our increased Q2 estimates as our checks indicate an accelerating comp trend as the quarter progressed, driven by strength in mobile phones, computing and flat panel TVs,” he writes. Kaiser thinks market share has improved from Q1, “helping to offset much of the broader industry weakness.”\

The Piper analyst expects the company to boost its guidance for FY 2010 above the current range of $2.50-$2.90 that was set in March. (His own estimate is $2.94.)

BBY Wednesday is up $1.23, or 3.4%, to $37.32.

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Source: Is Best Buy Picking Up Steam?