Analyst Max Rakhlenko of TD Cowen maintained a Hold rating on Tractor Supply (TSCO – Research Report), reducing the price target to $52.00.
Max Rakhlenko has given his Hold rating due to a combination of factors affecting Tractor Supply’s stock. The company’s guidance for the second half of the year suggests potential risks to both comparable sales and profit margins, contingent on how the broader economic environment evolves. This uncertainty may result in the stock remaining within a narrow trading range as investors weigh these risks against the company’s strengths, such as its leading position in its market segments and the stable demand for essential products in its portfolio.
Additionally, while the company is in a relatively strong position due to its scale and dominance in non-discretionary categories, there are concerns about the impact of tariffs and consumer demand for high-ticket items. The company’s exposure to imports, particularly from China, and the potential for significant revisions to earnings estimates add to the uncertainty. As a result, despite the company’s solid market position, the stock may not see significant movement until these issues are resolved, prompting Rakhlenko to maintain a Hold rating.
In another report released yesterday, J.P. Morgan also maintained a Hold rating on the stock with a $56.00 price target.