Bank of America Securities analyst Robert Ohmes has reiterated their bullish stance on TSCO stock, giving a Buy rating yesterday.
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Robert Ohmes has given his Buy rating due to a combination of factors that highlight Tractor Supply’s potential for growth. The company is expected to benefit from modest inflation in the second half of the year, which could positively impact ticket prices as the market shifts from deflationary to inflationary conditions. Additionally, Tractor Supply’s sales have shown sequential acceleration, with a notable increase from the second to the third quarter, despite some slowing in September due to external factors like weather conditions.
Ohmes also points to several strategic initiatives that are likely to support Tractor Supply’s growth. These include Project Fusion localization and Garden Centers, the expansion of private label and exclusive brands, and significant opportunities in pet-related services and retail media. Furthermore, the company is expected to see improvements in operating margins due to better fixed cost leverage and reduced SG&A deleverage compared to the first half of the year. These factors collectively underpin the confidence in Tractor Supply’s ability to achieve its price objective of $70.
According to TipRanks, Ohmes is a 5-star analyst with an average return of 7.9% and a 57.20% success rate. Ohmes covers the Consumer Defensive sector, focusing on stocks such as Walmart, Target, and Costco.
In another report released yesterday, Piper Sandler also reiterated a Buy rating on the stock with a $67.00 price target.