Best Buy (BBY) is likely to post in-line Q1 results on May 29, but also a reduced outlook amid tariff concerns and macroeconomic uncertainty, Wedbush said in a report Friday.

Wedbush analysts said they expect comps of minus 0.5% versus consensus estimates of minus 0.3% and guidance to be "slightly down" year on year.

"All in, with data points mixed, we see limited room for upside to our and consensus comp estimates for 1Q," they said.

Wedbush also said the shares have risen 12% over the last month on easing investor concerns regarding tariffs.

"However, even the remaining tariffs are a sizeable headwind given Best Buy's significant exposure to China," the note said.

The analysts pointed to positive developments in the building product replacement and innovation cycle, but also said the tariff overhang is an "unattractive near-term risk/reward" proposition.

Wedbush cut its price target to $75 from $83 while keeping its neutral rating on Best Buy.

Price: 69.90, Change: -0.86, Percent Change: -1.22