UPDATE: KeyBanc Downgrades Tractor Supply Company to Hold on Balanced Risk/Reward
KeyBanc lowers its rating on Tractor Supply Company (NASDAQ: TSCO) from Buy to Hold and establishes a $110 price target.
KeyBanc notes, "We are downgrading Tractor Supply Company (TSCO-NASDAQ) from BUY to HOLD, based on our view that the risk/reward has become more balanced as we look ahead to the coming quarters. Longer term, TSCO remains one of the more compelling growth stories in our coverage, with a strong management team, margin drivers, and ongoing unit growth potential. In the near term, we are taking a neutral tactical view on the stock. Specifically, we see increased risk from high valuation and lofty expectations, a likely deceleration in 2Q trends, a moderating inflation benefit, difficult comparisons, and industry datapoints that suggest softer consumer demand in recent months."
TSCO closed at $89.71 on Friday.
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