Tractor Supply, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Max Rakhlenko from TD Cowen maintained a Hold rating on the stock and has a $62.00 price target.
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Max Rakhlenko has given his Hold rating due to a combination of factors impacting Tractor Supply’s stock. The company’s second-quarter performance was solid, with comparable sales slightly exceeding expectations, driven by a balance of ticket and transaction growth. However, the sustainability of this performance is uncertain as the positive effects from seasonal factors may not persist into the third quarter, especially given the weather sensitivity of certain high-performing categories.
Additionally, while inflation is expected to rise in the latter half of the year, the impact of tariffs and elasticity on sales units remains a concern. Although the price target has been raised to $62, reflecting a positive outlook on earnings, the elevated valuation compared to peers and uncertainties in the second half of the year justify maintaining a Hold rating. The company’s strategic initiatives, such as the Final Mile program, show promise but are still in early stages of implementation, contributing to the cautious stance.
Rakhlenko covers the Consumer Cyclical sector, focusing on stocks such as Home Depot, Planet Fitness, and Williams-Sonoma. According to TipRanks, Rakhlenko has an average return of 9.4% and a 64.07% success rate on recommended stocks.
In another report released on July 21, Citi also maintained a Hold rating on the stock with a $57.00 price target.