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."

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Shares of Best Buy closed at $90.27 yesterday.