Raymond James is taking a break from Best Buy after its quarterly report and a run-up in share price this week. The firm moved its rating on Best Buy to market perform from outperform. "We are placing our stock recommendation in 'sleep mode' for now," Raymond James' Bobby Griffin said in a note. The call comes after Best Buy on Thursday reported underwhelming quarterly results that just matched Wall Street expectations. However, the stock rose as the company announced a 26% increase in its quarterly dividend. Raymond James said the move is not a reflection of Best Buy's investor event, but because the retail stock has rallied and surpassed the firm's previous price target of $105. The firm's analysts do not have a price target on Best Buy now. Best Buy shares are up 8% in 2022 and have rallied 28.7% from their Feb. 24 low. Griffin also sees difficult year-over-year comparisons for Best Buy from here. "We do find the set up for the next few quarters very challenging as the majority of Best Buy's product categories face very tough comparisons lapping work-from-home trends and multi rounds of government stimulus," he wrote. The stock is down about 1.8% in the premarket. —CNBC's Michael Bloom contributed reporting.
An employee brings a television to a customer's car at a Best Buy store in Orlando, Florida.
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Raymond James is taking a break from Best Buy after its quarterly report and a run-up in share price this week.