TD Cowen Flags Margin and Comparable Sales Pressure at Tractor Supply (TSCO)

TD Cowen has lowered its price recommendation for Tractor Supply Company (TSCO) to $53 from $55, reiterating a Hold rating due to a difficult operating environment squeezing comparable sales and margins. The company missed Wall Street expectations for fourth-quarter net sales and issued a weaker-than-expected outlook for annual sales and profit, citing a shift in consumer behavior towards essential products over discretionary items. Higher import costs (tariffs) also impacted gross margins, leading the company to adjust pricing strategies.

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