Tractor Supply price target lowered to $44 from $55 at Truist

Truist lowered the firm’s price target on Tractor Supply (TSCO) to $44 from $55 and keeps a Hold rating on the shares. The firm notes Q1 was below its recently lowered estimates, including a comparable-store sales gain of 50 basis points versus its prior expectation of 2.0%, primarily due to soft results from the companion animal category. In Truist’s view, this is one of the most important categories for Tractor Supply given its traffic driving nature and it views this result as a negative inflection for the business. While the company is shifting mix to improve its performance, the firm also suspects there could be growing competitive pressures in the segment.