Core Insights - Best Buy and Target are facing challenges due to new tariffs impacting their sourcing from China and Mexico, which could affect their margins [1][2] Best Buy - Best Buy is significantly affected by tariff uncertainty, sourcing 60% of its goods from China and 20% from Mexico, despite reporting its first positive comparable sales since Q3 2021 [2] - Analyst Christopher Horvers has reduced Best Buy's stock price target from $115 to $110, while still believing in its long-term potential due to self-help measures like advertising growth and a new marketplace [3] - Year-to-date, Best Buy's stock has declined by 12.7%, trading below key moving averages, indicating further downside risk [6] Target - Target has reduced its reliance on China from 60% in 2017 to 30% currently, with plans to decrease it to 25% next year, aiming to mitigate tariff impacts [4] - Target is exploring alternative profit streams, such as its Roundel advertising business and marketplace expansion, to cushion the effects of tariffs, but the near-term outlook remains cautious with a price target reduction from $146 to $140 [5] - Year-to-date, Target's stock has declined by 14.6%, also trading below key moving averages, suggesting potential further downside [6]