Evercore ISI maintains In Line rating on Tractor Supply stock amid recent rally

Published 21/07/2025, 11:28
Evercore ISI maintains In Line rating on Tractor Supply stock amid recent rally

Investing.com - Evercore ISI has reiterated its In Line rating and $60.00 price target on Tractor Supply Company (NASDAQ:TSCO) following the stock’s 16% rally since June 1. The stock, currently trading at $56.58, sits near its 52-week high of $61.53, with InvestingPro data indicating the company maintains a GOOD overall financial health score.

The research firm notes that Tractor Supply stock has significantly outperformed the broader market, which rose approximately 6% during the same period. This outperformance comes as the company continues working toward returning to its algorithmic comparable sales growth target of 3-5%. According to InvestingPro, the company has demonstrated consistent strength, maintaining dividend payments for 16 consecutive years and achieving a 2.07% revenue growth in the last twelve months.

Evercore ISI’s analysis indicates that web traffic data for Tractor Supply has remained solid, performing better than home-related peers like Home Depot (NYSE:HD) and Lowe’s (NYSE:LOW). The firm also observed that after some softness in the first three weeks of June following Memorial Day, retail trends strengthened again through July with strong performance during the July 4th weekend and Prime Day.

The research firm models second-quarter earnings within the company’s guidance range, with full-year 2025 earnings per share estimated at $2.08, in line with consensus estimates. With the company’s next earnings report due on July 24, investors can access comprehensive analysis and additional insights through InvestingPro’s detailed research reports. Improved CPI/PPI data should have aided sequential ticket improvement, according to the analysis.

Evercore ISI maintains its In Line rating as the stock now trades at approximately 24 times the firm’s 2026 EPS estimate of $2.35, representing a roughly 20% premium to the market and positioning the valuation near the top end of its historical average. This aligns with InvestingPro’s Fair Value analysis, which suggests the stock is currently trading above its intrinsic value, with a P/E ratio of 27.87x.

In other recent news, Tractor Supply Company is preparing to release its second-quarter earnings, with analysts from Citi maintaining a Neutral rating while raising the price target to $57. Citi highlighted the volatility in Tractor Supply’s seasonal business due to weather trends and expects same-store sales to reach at least 0.5-1.0% for Q2. Piper Sandler also increased its price target for Tractor Supply to $66, citing improved rural trends and a notable increase in median comparable sales. The firm anticipates continued strength in poultry sales and improved trends for the third quarter. DA Davidson reiterated its Buy rating and $65 price target, maintaining a positive outlook on the company. Meanwhile, UBS kept its Neutral rating and $54 price target, suggesting that much of the anticipated improvement is already reflected in the stock price. Additionally, Tractor Supply shareholders approved key proposals at the company’s Annual Meeting, including the election of all nominated directors and the ratification of Ernst & Young LLP as the independent auditor for fiscal 2025. Shareholders also voted in favor of an amendment to the company’s Restated Certificate of Incorporation, aligning with governance practices and regulatory requirements.

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