03:22 PM EDT, 08/29/2025 (MT Newswires) -- Best Buy's ( BBY ) Q2 comparable sales growth of 1.6% reflects consumers' growing interest in some of the electronics retailer's assortment and its strength amid change, despite competition and market pressure concerns, UBS Securities said in a note emailed Friday.

Best Buy ( BBY ) expects Q3 comparable sales to mirror Q2 levels. This guidance is supported by strong back-to-school demand and broad category gains, though gaming growth is seen moderating, UBS said.

However, UBS expects Best Buy's ( BBY ) gross margin rate in Q3 to see "modest" pressure on product margins. A potentially worsening tariffs that could heighten the pressure on margins "could remain an overhang for shares," the brokerage added.

UBS maintained its buy rating on the stock with a price target of $90.

Shares of the company were up 1.3% in recent trading.

Price: 73.59, Change: +0.93, Percent Change: +1.28