Wedbush Raises Price Target on Tractor Supply (TSCO), Strong Results and Outlook Means 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 from $75 to $79 following the release of its third quarter results.
The company reported EPS of $0.58 for the quarter, beating the consensus and firm by $0.05 and $0.06. Gross margin rose 30 bps to 33.5% as total sales increased 17.9 percent. The firm notes, "Sales growth was driven by core consumable categories, heating products, and emergency response merchandise related to Hurricane Irene." Comps rose 11.5 percent during the quarter, well above the firm's and Street's estimates of 4 percent and 4.8 percent.
Management raised its FY11 EPS guidance from $2.75-$2.82 to $2.85-$2.89 and its comps outlook for the year from 5-6 percent to 6.5-7 percent. Operating margin is also now forecasted to be over 15 percent by 2015.
To go inline with the company's performance and new outlook, Wedbush is raising its 2011 and 2012 EPS estimates from $2.82 and $3.24 to $2.91 and $3.38.
The firm is reaffirming its Outperform rating on the share due to the company's strong execution and long-term outlook potential. An analyst at Wedbush comments, "The company’s track record has been very strong, and we believe this should sustain TSCO’s multiple relative to the hardlines peer group. We see opportunity for further upside from big-ticket items, branded horse feed, outdoor power equipment, seasonal merchandise, private label, price optimization, and other systems investments."
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 $66.28 yesterday.
The company reported EPS of $0.58 for the quarter, beating the consensus and firm by $0.05 and $0.06. Gross margin rose 30 bps to 33.5% as total sales increased 17.9 percent. The firm notes, "Sales growth was driven by core consumable categories, heating products, and emergency response merchandise related to Hurricane Irene." Comps rose 11.5 percent during the quarter, well above the firm's and Street's estimates of 4 percent and 4.8 percent.
Management raised its FY11 EPS guidance from $2.75-$2.82 to $2.85-$2.89 and its comps outlook for the year from 5-6 percent to 6.5-7 percent. Operating margin is also now forecasted to be over 15 percent by 2015.
To go inline with the company's performance and new outlook, Wedbush is raising its 2011 and 2012 EPS estimates from $2.82 and $3.24 to $2.91 and $3.38.
The firm is reaffirming its Outperform rating on the share due to the company's strong execution and long-term outlook potential. An analyst at Wedbush comments, "The company’s track record has been very strong, and we believe this should sustain TSCO’s multiple relative to the hardlines peer group. We see opportunity for further upside from big-ticket items, branded horse feed, outdoor power equipment, seasonal merchandise, private label, price optimization, and other systems investments."
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 $66.28 yesterday.
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