Tractor Supply Company (TSCO) Thoughts After Positive Preannouncement - Piper Sandler

Piper Sandler analyst Peter Keith reiterated an Overweight rating and $261.00 price target on Tractor Supply Company (NASDAQ: TSCO) after the company announced that it expects a Q2 comp of 5% vs. consensus of 4.5%.

The analyst stated "Our initial read is that the channel is currently tracking to a -LSD% to -MSD% comp for Q2, which would place TSCO ~10% above the channel for the second quarter in a row. We also expect the Q2 inflation benefit is running above the Q1 benefit of 10%. Margin performance for Q2 at TSCO looks solid despite concerns of elevated seasonal inventory. However, we note TSCO probably won't take seasonal markdowns until Q3 (July & August) - if markdowns are necessary. All in, TSCO appears to be executing extremely well with its internal initiatives (Neighbors Club, new customer capture, in-stock levels, and Side Lot & Project Fusion, etc.). We move our full year 2022E EPS to $9.65 (vs. guidance of $9.20-$9.50)."

For an analyst ratings summary and ratings history on Tractor Supply Company click here. For more ratings news on Tractor Supply Company click here.

Shares of Tractor Supply Company closed at $199.09 yesterday.

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