Tractor Supply's Q3 May Face Headwinds Amid Decline In Major Discretionary Sales, Analyst Forecasts
Portfolio Pulse from Nabaparna Bhattacharya
Truist Securities analyst Scot Ciccarelli has reiterated a Buy rating on Tractor Supply Company (TSCO), but lowered the price target to $235 from $257. The Q3 comp/EPS forecast has been revised down due to softer sales trends, attributed to a decline in big-ticket discretionary sales, moderating same SKU inflation, and potential weather challenges. Despite near-term pressures, the company's trends remain stable due to its needs-based demand structure and pandemic-driven behavioral shifts. TSCO shares are trading lower by 0.54% to $204.90.
October 05, 2023 | 7:44 pm
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Tractor Supply Company's Q3 comp/EPS forecast has been revised down due to softer sales trends. Despite this, the company's trends remain stable due to its needs-based demand structure and pandemic-driven behavioral shifts.
The lowered price target and revised down Q3 forecast by Truist Securities indicate potential short-term negative impact on TSCO's stock. However, the company's stable trends and needs-based demand structure could mitigate this impact.
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