Tractor Supply stock faces uncertainty as UBS maintains Neutral rating

Investing.com - UBS maintained its Neutral rating and $61.00 price target on Tractor Supply Company (NASDAQ:TSCO), a $29.5 billion market cap retailer, ahead of its third-quarter earnings report scheduled for October 23. According to InvestingPro, the company has shown consistent dividend growth, raising payments for 15 consecutive years.

The farm and ranch retailer stands at an inflection point, with anticipated inflation in commodity-based products and the benefit of passing along tariff-driven price increases, according to UBS. With revenue growth of 3% over the last twelve months and a healthy financial profile (rated GOOD by InvestingPro’s comprehensive analysis), the company appears positioned to navigate these challenges.

The research firm noted that while Tractor Supply is perceived as resilient due to its pricing power, the elasticity of its product categories becomes increasingly important as the company may need to shift from raising prices in inelastic categories to elastic items.

UBS indicated that a strong bull case would emerge if Tractor Supply demonstrates meaningful comparable sales acceleration in the third quarter along with steady fourth-quarter trends, potentially setting the foundation for mid-single-digit comparable growth in 2026 versus the current consensus forecast of 3.3%.

Despite acknowledging that the risk-reward balance has improved in recent weeks, UBS remains on the sidelines until Tractor Supply shows evidence of returning to its long-term growth trajectory.

In other recent news, Tractor Supply Company has announced its quarterly cash dividend of $0.23 per share, set to be paid on September 9, 2025, to stockholders of record as of August 25, 2025. Piper Sandler has raised its price target for Tractor Supply to $67.00, maintaining an Overweight rating, following the company’s strong second-quarter results that surpassed expectations. Mizuho has also reiterated its Outperform rating on Tractor Supply, identifying it as one of its "Consumer Top Picks" with a price target of $64.00.

In product-related developments, Tractor Supply has launched an exclusive women’s apparel line in collaboration with Molly Yeh, available in over 2,300 stores and online. Additionally, the company has become the exclusive national retailer for SmartEquine’s SmartPaks, which are pre-portioned daily supplement packs for horses. These recent announcements reflect Tractor Supply’s ongoing efforts to expand its product offerings and maintain investor confidence.

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