BAML analyst Curtis Nagle cut Best Buy rating to "underperform" from "neutral", where he pegged the stock only a month ago, and clipped his price target by $20 a share to $50 a hare, citing "deceleration in industry growth trends and continued caution on key product categories such as TVs, Apple products and gaming."
Best Buy fell 5.8% to $52.16 on Monday.
Best Buy topped analysts estimates for its third quarter earnings last month, with a bottom line of 9 cents a share and sales of $9.59 billion. However, its tepid December quarter outlook, which missed Street estimates, has pressured shares of late as investors worry that slowing Apple Inc (AAPL) - Get Report iPhone sales could chip away at earnings.
Consumer electronics, including iPhones and computers, comprise around half of Best Buy's U.S. revenues, and BAML said it sees "headwinds related to the iPhone and a new Apple and Amazon partnership."
Last month, Amazon AMZN agreed to make Apple products easier to locate on its digital shopping platform and said it would dump products from third party sellers that aren't Apple authorized starting in January.
"We're working with Amazon to improve the experience for Apple customers on their site and we look forward to those customers having another great way to buy iPhone, iPad, Apple Watch, Mac and more," Apple said in a statement at the time.