Wedbush Raises Price Target on Tractor Supply (TSCO), Strong Track Record + Outlook = Solid Buy
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Price: $35.83 -0.94%
Rating Summary:
25 Buy, 18 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
25 Buy, 18 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush is reiterating its Outperform rating on shares of Tractor Supply Company (NASDAQ: TSCO) and is raising its price target by $2 to $75 following its Q2 earnings.
The company posted its Q2 results with sales totaling $1.18 billion, EPS of $1.23, and comps being up 4.6 percent, which all topped the firms and Street's estimates. Gross margin for the quarter was up 50 bps to 34.2 percent.
Management highlighted that the strong sales seen in June was carrying over to July. Tractor Supply increased its 2011 EPS guidance from $2.62-$2.70 to $2.75-$2.82. The company also believes that comps will be up 5-6 percent for the year, up from its previous estimate of 3.5-5 percent.
As a result of recent market trends and the company's new guidance, the firm is raising its 2011 EPS estimate from $2.75 to $2.82 and its 2012 estimate from $3.20 to $3.24.
An analyst at Wedbush comments, "We see opportunity for further upside from branded horse feed, outdoor power equipment, seasonal merchandise, private label, price optimization, and other systems investments. The company now has a dedicated product development team which has rationalized the portfolio of brands and focused on growing the assortment of core lifestyle products."
For more ratings news on Tractor Supply Company click here and for the rating history of Tractor Supply Company click here.
Shares of Tractor Supply Company closed at $70.67 yesterday.
The company posted its Q2 results with sales totaling $1.18 billion, EPS of $1.23, and comps being up 4.6 percent, which all topped the firms and Street's estimates. Gross margin for the quarter was up 50 bps to 34.2 percent.
Management highlighted that the strong sales seen in June was carrying over to July. Tractor Supply increased its 2011 EPS guidance from $2.62-$2.70 to $2.75-$2.82. The company also believes that comps will be up 5-6 percent for the year, up from its previous estimate of 3.5-5 percent.
As a result of recent market trends and the company's new guidance, the firm is raising its 2011 EPS estimate from $2.75 to $2.82 and its 2012 estimate from $3.20 to $3.24.
An analyst at Wedbush comments, "We see opportunity for further upside from branded horse feed, outdoor power equipment, seasonal merchandise, private label, price optimization, and other systems investments. The company now has a dedicated product development team which has rationalized the portfolio of brands and focused on growing the assortment of core lifestyle products."
For more ratings news on Tractor Supply Company click here and for the rating history of Tractor Supply Company click here.
Shares of Tractor Supply Company closed at $70.67 yesterday.
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