Tractor Supply Expects To Grow Newly Acquired Petsense To Over 1,000 Stores

Retail chain Tractor Supply Company TSCO announced last week the acquisition of pet supply retailer Petsense. Tractor Supply Company expects to scale its new purchase to over a 1,000 stores at an annual growth rate of 15-20 percent per year.

BMO analysts don't feel that the acquisition will deliver any material gains to the company's overall growth rate or returns of the long haul, leaving them wondering why the purchase was even made.

Tractor Supply paid $116 million for Petsense, which isn't expected to reflect any changes in the company's net EPS in FY2016, revenue, margins or share repurchases.

BMO has a Market Perform rating on Tractor Supply with a $74 price target.