DA Davidson Downgrades Best Buy (BBY) to Neutral

DA Davidson analyst Michael Baker downgraded Best Buy (NYSE: BBY) from Buy to Neutral with a price target of $95.00.

The analyst comments "We are downgrading BBY to from buy to NEUTRAL mostly on profit taking and valuation as the stock is within 5% of our target price. But while believe fundamentals are still solid, we do see a few items worth watching. Our price target remains $95, based on 13.0x our 2027 estimate. We are also increasing our 3Q26 EPS estimates to $1.53 from $1.50, but entirely due to the $41M in tariff refund received on 9/2/26, as reported in BBY’s 10-Q filed on Friday afternoon, net of our reinvestment estimate. The consensus estimate is $1.40 and likely does not include this just released data point. This followed the $34M refund announced in 2Q. While this helps EPS, we don’t believe the market will give “credit” for this margin improvement."

For an analyst ratings summary and ratings history on Best Buy click here. For more ratings news on Best Buy click here.

Shares of Best Buy closed at $90.27 yesterday.

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