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Investing.com - Evercore ISI raised its price target on Tractor Supply Company (NASDAQ:TSCO) stock to $65.00 from $60.00 on Friday, while maintaining an "In Line" rating following the retailer’s second-quarter results. The company, currently valued at $31.46 billion, trades at a P/E ratio of 29.4x, which aligns with Evercore’s valuation concerns. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.
The rural lifestyle retailer posted a comparable sales increase of 1.5% in the second quarter, exceeding Wall Street expectations by 100 basis points and marking its best performance in two years. This performance contributes to the company’s overall revenue growth of 2.07% over the last twelve months. Evercore noted sequential improvement each month during the quarter, with momentum continuing into July. InvestingPro data shows the company maintains a strong financial health score, with particularly robust profitability metrics.
Tractor Supply’s management now forecasts comparable sales to reach 2% at the midpoint in 2025, implying a 200 basis point acceleration in the second half of the year. The company expects this growth to come from a balanced combination of increased traffic and higher average ticket size.
Evercore analysts pointed to easier year-over-year comparisons, more favorable weather conditions, and continued tailwinds from rural macro drivers as potential catalysts for the projected growth. July’s improvement was attributed to cooperative moist weather, while a delayed spring start allowed the company to recover from first-quarter weakness.
Despite these positive indicators, Evercore maintained its neutral stance, citing the stock’s valuation at "the upper end of historic norms" and limited near-term visibility regarding tariff impacts. The firm’s $65 price target represents 28 times its 2026 earnings estimate of $2.35 per share. It’s worth noting that Tractor Supply has demonstrated strong shareholder returns, maintaining dividend payments for 16 consecutive years and raising them for 15 straight years. For deeper insights into TSCO’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports.
In other recent news, Tractor Supply Company reported impressive financial results for the second quarter of 2025, surpassing analysts’ expectations. The company achieved an earnings per share of $0.81, slightly above the forecasted $0.80. Additionally, Tractor Supply posted record sales of $4.44 billion, marking a 4.5% increase compared to the same period last year. These results have generated positive sentiment among investors. Furthermore, BofA Securities upgraded Tractor Supply’s stock from Underperform to Buy, citing an anticipated easing of deflation headwinds. The firm also raised its price target for the company to $70.00 from $53.00. BofA expects company initiatives to gain momentum in the latter half of 2025 and into 2026. These developments highlight a favorable outlook for Tractor Supply.
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