Tractor Supply downgraded to Neutral from Buy at BofA

BofA downgraded Tractor Supply to Neutral from Buy with a price target of $226, down from $270, ahead of the company’s Q2 earnings call on Thursday, July 27. Given a fading tailwind from inflation, worsening demand for discretionary categories and the firm’s estimate that one third of revenue comes from animal/pet food, BofA expects Tractor Supply to report an earnings miss and cut guidance, the analyst tells investors. The firm hosted a call last week with competitor Theisen’s Chief Merchandising Officer and were concerned to hear that demand for discretionary categories has worsened since April, BofA noted.