Tractor Supply Gets Price Target Raises as Analysts Act on Strong Outlook

Tractor Supply expects net sales growth of 24% to 29% and comparable-store sales growth of 20% to 25% during the current quarter.
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Tractor Supply  (TSCO) - Get Report shares rose Wednesday as at least four analysts raised their share-price targets for the rural lifestyle retailer after it released an outlook calling for a surge in sales during this current quarter.

“Building on the momentum in its business in the first quarter of 2020, Tractor Supply continues to experience record sales across its channels, product categories and geographic regions,” the company said in a statement.

It expects net sales growth of 24% to 29% and comparable-store sales growth of 20% to 25% this quarter.

“The company’s gross profit performance continues to be strong, with gross margin expansion anticipated for the second quarter,” Tractor Supply said.

The company predicts that net operating expenses related to the COVID-19 pandemic will come in at the high end of its previous guidance of $30 million to $50 million. It estimates earnings per share of $2.45 to $2.65 for the second quarter.

As for the analysts, Instinet raised its share-price target to $110 from $95; Raymond James to $135 from $115, Oppenheimer to $135 from $110 and Wedbush to $120 from $95.

Oppenheimer analyst Brian Nagel wrote in a commentary that while Tractor Supply’s buoyant sales growth is likely to moderate, management is taking steps that will likely create an even stronger business model as effects from the pandemic begin to diminish.

He kept his outperform rating on shares of Tractor Supply.

Tractor Supply shares recently traded at $115.65, up 3.99%. The stock has soared 22% over the past three months.