Tractor Supply price target lowered to $245 from $265 at Guggenheim

Guggenheim lowered the firm’s price target on Tractor Supply to $245 from $265 and keeps a Buy rating on the shares. The firm is encouraged to hear Q2 comps are set to finished ahead of Q1 and comp outlook for Q3 is set at flat to slightly positive, the analyst tells investors. EBIT margins have already returned to 2018-2019 levels and the firm does not expect the farm & ranch industry is entering the second half of the year with excess levels of merchandise margin. Guggenheim sees an increased likelihood that the company will fully unlock any gross margin-related upside during 2023, resulting int he firm finding it difficult to envision above-average EPS growth in 2024.