Telsey Advisory analyst Joe Feldman maintains $Tractor Supply (TSCO.US)$ with a buy rating, and maintains the target price at $335.
According to TipRanks data, the analyst has a success rate of 58.4% and a total average return of 8.4% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Tractor Supply (TSCO.US)$'s main analysts recently are as follows:
Estimates for Tractor Supply were anticipated to be revised upward prior to the company's report, however, subtle indications from the company led to a slight downward revision for the 2025 estimates. The company is expected to reveal the next phase of its plans in December, which may generate enthusiasm regarding the retailer's future prospects.
Following the Q3 report, it's noted that Tractor Supply's sales continue to be subdued, casting doubt on the company's ability to return to its mid-single-digit comp target. Additionally, it is anticipated that the margin gains will begin to level off. Although there's no expectation for figures to rise, it is acknowledged that Tractor Supply maintains a degree of defensiveness and is positioned to potentially benefit from certain post-election trends, which may support the current share levels.
The company's in-line quarter and the increase of the lower end of its guidance did not suffice to maintain the stock's value near its peak, attributed to what is considered a stretched valuation before earnings. With the risk/reward standing at multiples of 25 times the projected earnings for next year and 15 times EBITDA, the potential for significant upside appears limited. The projections for earnings per share in 2024 and 2025 remain static, according to the analyst's assessment.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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