Barclays maintains an 'Overweight' on Tractor Supply (TSCO); 3Q Preview - Remains a Top Pick
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Price: $35.05 -1.1%
Rating Summary:
25 Buy, 18 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 11
Rating Summary:
25 Buy, 18 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 11
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Barclays maintains an 'Overweight' on Tractor Supply Company (NASDAQ: TSCO) price target of $80.00.
Barclays analyst says, "TSCO remains a Top Pick: We believe Tractor Supply is a growth company that remains well-positioned to gain share as it continues to focus on its customers and improve the business for future success. Recall, we hosted investor meetings with management last month and we believe fundamental trends remain solid. Tractor Supply remains on track in executing its gross margin enhancement initiatives - these include price optimization, private label expansion, direct factory sourcing and inventory management. We note that our full year 2011 EPS estimate of $2.85 is based on 6.0% comps and compares to guidance of $2.75-$2.82 on 5%-6% comps."
"Our 3Q11 EPS estimate is $0.54, representing a 25% increase versus $0.43 last year. Consensus is $0.52. The company did not provide 3Q11 guidance. We expect gross margin to increase 33 bps, to 34.00%, due primarily to improved product margins. SG&A expenses, as a percentage of sales, are expected to improve 42 bps, to 25.00%, due to expense leverage on the 4.5% expected comp. In total, we project a 67 bp increase in 3Q operating margin, to 6.80%."
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 $65.98 yesterday.
Barclays analyst says, "TSCO remains a Top Pick: We believe Tractor Supply is a growth company that remains well-positioned to gain share as it continues to focus on its customers and improve the business for future success. Recall, we hosted investor meetings with management last month and we believe fundamental trends remain solid. Tractor Supply remains on track in executing its gross margin enhancement initiatives - these include price optimization, private label expansion, direct factory sourcing and inventory management. We note that our full year 2011 EPS estimate of $2.85 is based on 6.0% comps and compares to guidance of $2.75-$2.82 on 5%-6% comps."
"Our 3Q11 EPS estimate is $0.54, representing a 25% increase versus $0.43 last year. Consensus is $0.52. The company did not provide 3Q11 guidance. We expect gross margin to increase 33 bps, to 34.00%, due primarily to improved product margins. SG&A expenses, as a percentage of sales, are expected to improve 42 bps, to 25.00%, due to expense leverage on the 4.5% expected comp. In total, we project a 67 bp increase in 3Q operating margin, to 6.80%."
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 $65.98 yesterday.
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