Analyst David Bellinger from Mizuho Securities reiterated a Hold rating on Tractor Supply (TSCO – Research Report) and keeping the price target at $250.00.
David Bellinger has given his Hold rating due to a combination of factors affecting Tractor Supply Company’s (TSCO) performance. After meeting with Tractor Supply’s senior management and touring the store support center, Bellinger acknowledges the company’s resilience in facing a challenging operational landscape. Despite a positive outlook on the company’s initiatives and potential for better-than-expected sales and earnings in FY24, there are still risks that prevent an outright bullish stance. The company’s late first-quarter comparable sales acceleration and dynamic big-ticket spending show promise, yet weather inconsistencies and a cautious sentiment expressed by peers like Home Depot suggest potential volatility in near-term demand.
Bellinger also notes Tractor Supply’s ongoing efforts to enhance store productivity and expand its product portfolio. With almost 500 garden centers, high-ticket items like utility vehicles, and an expanding range in popular categories such as poultry, grilling, and apparel, TSCO is continuously identifying new avenues for sales growth. However, pricing remains a concern, with average unit retail acting as a headwind in the first quarter, although there is an expectation for stabilization in the coming quarters. These mixed signals—between operational initiatives likely to foster growth and the external factors that could dampen sales—support the rationale behind the Hold rating.
In another report released on May 3, J.P. Morgan also maintained a Hold rating on the stock with a $263.00 price target.
Based on the recent corporate insider activity of 78 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TSCO in relation to earlier this year.
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Tractor Supply (TSCO) Company Description:
Tractor Supply Co. engages in the retail sale of farm and ranch products. It operates retail farm & ranch stores and focuses on supplying the lifestyle needs of recreational farmers and ranchers, as well as tradesmen and small businesses. The firm operates the retail stores under the names: Tractor Supply Company, Del’s Feed & Farm Supply, and Petsense. Its product categories includes equine, livestock, pet, and small animal; hardware, truck, towing, and tool; heating, lawn and garden items, power equipment, gifts, and toys; recreational clothing and footwear; and maintenance products for agricultural and rural use. The company was founded by Charles E. Schmidt, Sr. in 1938 and is headquartered in Brentwood, TN.
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