Steven Zaccone, an analyst from Citi, maintained the Hold rating on Tractor Supply (TSCO – Research Report). The associated price target remains the same with $59.00.
Steven Zaccone has given his Hold rating due to a combination of factors influencing Tractor Supply’s current and future performance. In the short term, the company is poised to benefit from the upcoming spring season, which is crucial for its sales, particularly in the last two weeks of March that contribute significantly to the first quarter’s revenue. However, the impact of seasonal events like ‘chick days’ is expected to be more pronounced in the second quarter, which tempers immediate expectations.
In the long term, Tractor Supply is focusing on growth opportunities through initiatives such as direct sales to Big Barn customers, pet prescriptions, and enhanced delivery and localization strategies. While these initiatives present potential for incremental growth, the company’s performance in big-ticket sales is expected to align with the chain average in 2025. Additionally, Tractor Supply aims to continue gaining market share in the farm and ranch channel, a sector that has seen a reduction in the number of retailers over the years. Despite these positive aspects, the expected share price return of 9.4% suggests a moderate outlook, justifying the Hold rating.
Based on the recent corporate insider activity of 74 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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