Tractor Supply Company (TSCO) PT Lowered to $260 at JPMorgan
JPMorgan analyst Christopher Horvers lowered the price target on Tractor Supply Company (NASDAQ: TSCO) to $260.00 (from $263.00) while maintaining a Neutral rating.
The analyst comments "PM’s take: bouncing along the bottom and managing well but the launch remains in a holding pattern. In our view, the print hit the low end of expectations, with comps a little lighter than expected partly offset by expected strong margin performance (gross margin and SG&A). We previewed TSCO taking up the low end of the range on the FY outlook, which they did, but also narrowed down the top end. Thus, nothing that far from expected with management a titch more cautious on the consumer and less optimistic on reflation given recent commodity price movements. As noted in our TSCO mgmt meetings in May, TSCO again indicated that to get back to its normal 4-5 comp algo, it doesn’t need macro tailwinds, just a neutral backdrop, including normalized levels of inflation (~1%) and the absence of share of wallet headwinds. Thus, the takeaway from today is that the return to the algo is pushed about a bit. As such, bears will continue to focus on valuation while bulls look at comp progression and margin performance."