Best Buy Shares Drop After DA Davidson Downgrades Stock
Best Buy (NYSE:BBY) shares fell by 2.2% in premarket trading after investment firm DA Davidson downgraded the stock from 'Buy' to 'Neutral,' setting a new price target of $95 per share. The downgrade was attributed to valuation concerns following Best Buy's recent recovery, with its current share price near its 52-week high and within approximately 5% of the updated target. Despite lowering its rating on Best Buy, DA Davidson raised its third-quarter earnings estimate for fiscal year 2026 from $1.50 to $1.53 per share due to a reported $41 million tariff refund disclosed by the company in a recent SEC filing. The broader U.S. market showed mixed performance during this period with declines in both the S&P 500 and Dow Jones Industrial Average, while the Nasdaq rose slightly. Best Buy's stock is currently trading near its upper end of the 52-week range between $55.10 (low) and $91.27 (high). The average analyst rating for Best Buy remains 'Hold,' indicating a cautious outlook among analysts as they assess valuation, earnings estimates, and recent performance.
Tickers: $BBY
Topics: Best Buy earnings estimate price target stock downgrade