DA Davidson analysts reaffirmed a Buy rating and a $110.00 price target on Best Buy (NYSE:BBY), citing strong fourth-quarter performance and promising growth trends.

The analysts highlighted that Best Buy’s Q4 comparable sales beat indicates the early stages of a product cycle ramp, which began in computing and is expected to extend into other categories throughout the year.

However, the analysts also noted emerging risks related to tariffs, as a significant portion of Best Buy’s product inventory is manufactured overseas. While tariffs were not explicitly included in the company’s guidance, they could pose a headwind to future results if trade policies shift.

Despite these concerns, the analysts remain optimistic about Best Buy’s growth trajectory, supported by strengthening product demand and ongoing margin expansion.