Tractor Supply Faces Challenges With Post-Pandemic Sales Decline And Margin Pressures, BofA Downgrades Stock
Portfolio Pulse from Shivani Kumaresan
BofA Securities analyst Jason Haas downgraded Tractor Supply Co (TSCO) from Neutral to Underperform and lowered the price target from $207 to $171. The downgrade is due to post-pandemic sales decline, margin pressures, and feed price deflation. TSCO is facing challenges as discretionary and consumable product sales decline. The analyst also cites reduced clarity in earnings due to changes in accounting policy and has lowered FY24/25/26 EPS estimates by 3%/7%/7%. TSCO shares dropped by 2.96% to $217.47.
December 15, 2023 | 5:59 pm
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Tractor Supply Co downgraded by BofA from Neutral to Underperform with a price target cut from $207 to $171 due to sales decline and margin pressures post-pandemic. FY24/25/26 EPS estimates lowered, and shares fell by 2.96%.
The downgrade by BofA reflects a negative outlook on TSCO's future performance, particularly due to the expected decline in sales and margin pressures. The reduction in price target and EPS estimates, along with the immediate negative reaction in stock price, suggest a bearish short-term impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100