Jefferies analyst Jonathan Matuszewski upgraded the rating on Tractor Supply to a Buy today, setting a price target of $64.00.
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Jonathan Matuszewski has given his Buy rating due to a combination of factors including Tractor Supply’s strong consumer demographic and promising growth initiatives. Despite the current consumer uncertainty, Tractor Supply’s customer base, characterized by above-average income and fiscal conservatism, provides a stable foundation. The company’s valuation is currently at a discount compared to historical averages, which is surprising given the expected double-digit EPS growth by 2026 and the premium at which its retail peers are trading.
Furthermore, Tractor Supply is actively pursuing growth through initiatives such as expanding its customer base with Big Barn, increasing wallet share with pet households through PetRx, and leveraging its loyal customer base with Retail Media. These initiatives have shown rapid progress, suggesting a growth opportunity that surpasses market expectations without incurring significant additional costs. The company’s strategic moves, including the opening of new stores and a focus on high-margin retail media, are expected to drive substantial revenue growth, making the current trading levels an opportune time for investment.
Matuszewski covers the Consumer Cyclical sector, focusing on stocks such as Best Buy Co, Wayfair, and Home Depot. According to TipRanks, Matuszewski has an average return of 6.2% and a 48.11% success rate on recommended stocks.
In another report released on November 13, Evercore ISI also maintained a Buy rating on the stock with a $65.00 price target.