Bank of America Merrill Lynch lowered the firm's rating of Best Buy to neutral from buy on slowing growth and risk to key products.
"We continue to see [Best Buy] as one of the highest quality hardline names but after several years of outsized growth and likely less opportunity for big beat and raise quarters, it is harder to justify," the firm's analyst Curtis Nagle said in a note Tuesday.
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The consumer electronics industry saw a slowdown in the third quarter and expects there is "less chance for a big" same store sales result for Best Buy in the year ahead. Specifically, Nagle said he sees a "risk from key products for at least the next few quarters."
"The biggest risks from a product perspective are TVs, gaming, Apple products and possibly appliances. Collectively we estimate these products are close to 50% of sales," Nagle said.
The firm lowered its price target on Best Buy shares to $70 a share from $92 a share.
Best Buy shares closed down 0.2 percent on Tuesday.