DA Davidson reiterated its Buy rating and $110 price target on Best Buy (NYSE:BBY), citing a positive shift in tariff policy that could ease pressure on the electronics retailer.

A recent Customs and Border Protection update has temporarily excluded many consumer electronics from new Chinese import tariffs. The exemption list includes key categories such as laptops, smartphones, monitors, and memory chips—product segments where Best Buy has substantial exposure.

Analysts believe this move reduces near-term cost risks and offers a tailwind for Best Buy, which has seen its stock under pressure since the announcement of sweeping reciprocal tariffs on Liberation Day. With many of the affected items forming the backbone of Best Buy’s product mix, the tariff relief could support margin stability and improve investor sentiment moving forward.