Jefferies on Monday lowered its rating on Best Buy to hold from buy, citing a slowdown in projected television sales due to increased competition from mass-market retailers.
"Our downgrade reflects concerns that a maturing 4K TV cycle will translate to softer comp sales and margins in this category for BBY," analyst Daniel Binder wrote in a note to clients.
"BBY has above avg. market share in 4K TV, but will face stiffer competition this holiday season. The commoditization of this technology could put 2H comp sales at risk for BBY."