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Best Buy (NYSE:BBY) shares fell 2.2% in premarket trading after DA Davidson downgraded the consumer electronics retailer to Neutral from Buy and set a $95 price target.

The firm cited valuation following a recovery in Best Buy's share price, which had moved to within approximately 5% of its new target. According to the supplied information, the shares had previously fallen as low as $55.10 during the past 52 weeks before recovering towards their 52-week high of $91.27.

DA Davidson's downgrade reflects the firm's assessment that the balance between potential return and risk has changed following the share-price increase.

Despite lowering its rating on Best Buy, DA Davidson increased its earnings estimate for the company's third quarter of fiscal 2026.

The firm raised its earnings-per-share forecast to $1.53 from $1.50, citing a $41 million tariff refund disclosed by Best Buy in a 10-Q filing submitted on September 5, 2026.

The higher earnings estimate and $95 price target represent DA Davidson's forecasts and do not establish Best Buy's future financial performance or share price.

Best Buy's premarket decline occurred after the shares had recently traded close to their 52-week high of $91.27.

According to the supplied information, the average analyst rating on Best Buy is currently Hold.

Analyst ratings and price targets represent the views of the respective firms and can change as financial results, forecasts and other information are updated.

The broader U.S. equity market was mixed during the same premarket period. The S&P 500 declined 0.1% and the Dow Jones Industrial Average fell 0.6%, while the Nasdaq gained 0.2%.

Best Buy's 2.2% decline followed the DA Davidson rating change as investors assessed the retailer's valuation, the revised quarterly earnings estimate and its recent share-price performance.

The company's next financial results will provide additional information on its operating performance relative to current analyst expectations.

Best Buy stock price