Morgan Stanley analyst Simeon Gutman maintained a Sell rating on Tractor Supply today and set a price target of $44.00.
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Simeon Gutman has given his Sell rating due to a combination of factors affecting Tractor Supply’s performance. One of the primary concerns is the extended period required for the company to recover from the ruralization trend, which is taking longer compared to its peers. Although there is a potential for an acceleration in comparable sales in the second half of 2025, this possibility has been anticipated, and Gutman remains skeptical about its rapid materialization.
Another factor influencing the Sell rating is the uncertainty surrounding the company’s ability to achieve significant growth in ticket sales, despite stable traffic trends. While there is potential for ticket growth driven by higher average unit retail prices due to tariffs and commodity price pressures, the overall impact on comparable sales might remain below average. Additionally, the market’s current optimism, reflected in the stock’s recent performance, may not align with the actual outcomes, leading to a cautious stance on the stock’s future performance.