Melius Research Issues Buy Recommendation for Tractor Supply

A recent report indicates that Melius Research has initiated coverage of Tractor Supply with a Buy recommendation, forecasting a slight upward price movement and strong revenue growth of 11.42%. However, some institutional shareholders have decreased their holdings, which could impact investor sentiment.

Date: 24-09-2024

AI Rating: 6

The report highlights key information regarding Tractor Supply's stock potential. Firstly, Melius Research's Buy recommendation suggests a positive outlook for the company. The analyst price forecast indicates a 0.33% upside, with a projected average price target of $277.70/share, slightly above its latest closing price of $276.79/share.

Moreover, the projected annual revenue for Tractor Supply is estimated at $16,394MM, marking an increase of 11.42%. This significant revenue growth indicates the company is expanding, which can lead to stronger market positioning and enhanced investor interest.

Regarding Earnings Per Share (EPS), the report projects a non-GAAP EPS of 11.68, which signifies profitability and a positive earnings outlook, typically appealing for investors seeking solid return potentials.

However, the report also reveals some negative sentiments among institutional shareholders. Notably, significant reductions in holdings by Capital International Investors and Wellington Management Group may signal caution among large investors, leading to a bearish outlook, indicated by the put/call ratio of 1.72.

Despite mixed reactions from institutions, the overall projected revenue growth and buy recommendation remain likely to have a favorable impact on Tractor Supply's stock prices.

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