Tractor Supply price target raised to $250 from $245 at Telsey Advisory

Telsey Advisory analyst Joseph Feldman raised the firm’s price target on Tractor Supply to $250 from $245 and keeps an Outperform rating on the shares. The company’s Q4 EPS exceeded the FactSet consensus on a better operating margin, which was due to lower supply chain costs, the analyst tells investors. While Q4 comp was soft, unusually warm weather had created a comp headwind, the firm adds. Further, more discerning spending by customers related to interest rates and inflation contributed to the sales pressure, Telsey adds. However, since the end of the quarter, Tractor Supply has seen better momentum due to colder temperatures in January and expects a return to a positive comp in Q1. While there are challenges for Tractor Supply in the near term, medium to long-term prospects remain solid and should continue to gain market share and dominate in rural America, the firm concludes.