DA Davidson Reiterates Buy Rating on Best Buy (BBY), Cuts PT

On May 29, DA Davidson reiterated a ‘Buy’ rating on Best Buy Co., Inc. (NYSE:BBY). However, the research firm cut its price target to $95 from $90. The analyst pointed to multiple factors behind the decision, including better tariff management by the company and anticipated policy changes that could further reduce tariff-related issues.

The $90 price target is based on expectations that the company is in the early stages of product cycle accelerations. According to DA Davidson, the tariff headwinds that affected the company’s operations in March have subsided. However, the analyst admits the company faces challenges depicted by weaker comparable store sales, which raise concerns about market share. Nevertheless, the company boasts solid fundamentals, such as a 22.6% gross profit margin.

In the first quarter of 2025, Best Buy delivered earnings per share of $1.15, better than $1.07 expected. Revenue in the quarter totaled $8.8 billion, above the $8.75 billion projected. Nevertheless, the stock tanked following the better-than-expected results, affirming broader market concerns. DA Davidson analyst believes the pullback presents an opportunity for investors to increase their holdings at a discounted valuation.

Best Buy Co. is a specialty retailer that specializes in electronic products. The company’s product portfolio includes consumer electronics, computing and mobile phones, appliances, entertainment, and home office products.

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