Tractor Supply price target raised to $255 from $220 at Piper Sandler

Piper Sandler analyst Peter Keith raised the firm’s price target on Tractor Supply to $255 from $220 and keeps an Overweight rating on the shares. The firm’s Q4 Farm & Ranch retailer survey shows Q4 comp for the industry at approximately -6.5% — well below retailers’ expectations in early October. Weather was cited as a “significant headwind” to sales by 100% of survey respondents. However, looking to Q1, as weather has flipped to a tailwind, retailers expect a Q1 comp of +3%, Piper says. Within Q4, gross margin for the channel was healthy. For Tractor Supply, the firm is reducing its Q4 comp estimate to a Street-low -5.5%, but remains bullish as it believes the Street is too pessimistic about 2024.