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Wedbush Downgrades Tractor Supply Company (TSCO) to Neutral

January 11, 2018 6:53 AM EST
Get Alerts TSCO Hot Sheet
Price: $261.72 +0.49%

Rating Summary:
    26 Buy, 14 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Wedbush downgraded Tractor Supply Company (NASDAQ: TSCO) from Outperform to Neutral with a price target of $80.00 (from $72.00).

Analyst Seth Basham commented, "Comp drags in recent years of weather, energy markets and deflation continue to lessen or inflect positively. Most notably, favorable weather conditions—colder than expected temperatures in November and December—likely drove strong sales in winter seasonal product categories including fuel, insulated outerwear )."and power equipment, leading us to boost our 4Q17 estimates above consensus. At the same time, while the weather forecast for 1Q18 looks favorable against easy comparisons, and company-specific drivers have legs, continued SG&A pressures including omnichannel spending may lead to initial implied 2018 operating margin guidance below consensus. At 20x 2018E EPS including estimated net tax reform benefits, TSCO appears fairly valued for ~11% long-term EPS growth, leading us to downgrade shares from OUTPERFORM to NEUTRAL but raise our price target to $80 (from $72

For an analyst ratings summary and ratings history on Tractor Supply Company click here. For more ratings news on Tractor Supply Company click here.

Shares of Tractor Supply Company closed at $78.53 yesterday.



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