Jonathan Matuszewski, an analyst from Jefferies, reiterated the Buy rating on Best Buy Co (BBY – Research Report). The associated price target remains the same with $92.00.
Jonathan Matuszewski’s rating is based on recent developments that could provide significant tariff relief for Best Buy. The U.S. Customs & Border Patrol announced exemptions from 125% reciprocal tariffs on key product categories such as smartphones and computers, which are crucial to Best Buy’s business. This exemption helps mitigate some of the tariff-related challenges the company faces, particularly since China is a major source of imports for Best Buy, accounting for approximately 60% of its imports.
Additionally, within Best Buy’s domestic segment, computing and mobile phones represent a substantial portion of sales, making the tariff exemption particularly beneficial. While there are still uncertainties regarding tariffs on other product categories and sourcing from countries like Mexico, the exemption provides a positive outlook for Best Buy’s financial performance. These factors combined support Matuszewski’s Buy rating for Best Buy’s stock.