Best Buy falls as D.A. Davidson downgrades stock to 'neutral'
BBY•Best Buy shares fall after downgrade
Shares of electronics retailer Best Buy BBY.N were down about 2% at $88.60 in morning trading after D.A. Davidson downgraded the stock to "neutral" from "buy" and maintained its price target at $95.
The brokerage said fundamentals remain healthy, supported by improving TV and appliance demand and higher-margin membership and marketplace businesses.
Analyst sentiment and stock performance
Three of 26 brokerages rate the stock "buy" or higher, 21 rate it "hold" and two rate it "sell"; their median price target is $85, according to data compiled by LSEG.
Including the session's moves, the stock has risen about 33% this year.
Caution tied to holiday dependence and consumer spending
D.A. Davidson also said the company's heavy dependence on holiday-quarter sales leaves little room for error, with softer consumer spending and leadership changes warranting caution.
The firm raised its Q3 EPS estimate to $1.53 from $1.50, citing a recently disclosed tariff refund, but said the benefit is largely one-time and not a major stock catalyst.
