TD Cowen raises Tractor Supply stock price target on better comps

Amazon, Tractor Supply, and Carter's reported higher freight costs in Q3 due to fuel and transportation expenses. Amazon (AMZN) offset some costs with operational improvements, while Tractor Supply (TSCO) saw margin pressure. Carter's (CRI) faced inventory delays. Shipping costs rose 11% YoY for Amazon, with operational improvements mitigating some increases.

Tesco (TSCO.L) will sell its Czech and Slovak operations to Ahold Delhaize (AD.AS) for €1.7B. Tesco expects €1.2B net proceeds, to be returned to shareholders via buybacks. The deal, pending regulatory approval, is expected to close in H2 2027 and have a neutral impact on earnings per share. The sold businesses generated £2.9B in sales and £115M in operating profit in the prior year.

Tractor Supply (TSCO) has successfully implemented a real estate strategy involving in-house store development and sale-leasebacks, achieving cost savings and strong returns. However, rising construction costs, permit delays, and higher interest rates may impact future returns. The company is also repurposing second-generation retail spaces to mitigate these challenges.

Telsey increased its price target for Tractor Supply (TSCO) to $40, citing strong strategy execution and market share gains. The firm expects fundamentals to improve, applying an 18x P/E to 2027 EPS estimates. TSCO reported Q3 earnings beating estimates but saw gross margin declines and lower comparable sales growth. TD Cowen and Truist adjusted targets to $36 and $34, respectively, maintaining Hold ratings.

Tractor Supply Company reported Q3 2026 earnings, with sales growth accelerating due to strategic share gains in core categories and digital business growth of 16%. Management aims for a 9% operating margin, expecting capital expenditures to drop below 4% of sales by 2027. Macroeconomic headwinds persist, but the pet segment showed improvement. The company plans $75 million in annual SG&A reductions over 2027-2028.

Tractor Supply Co (TSCO) reported Q3 2026 earnings, with gross margin declining 90 bps to 36.4% due to higher costs. Operating margin was 7.9%, below the company's 9% target. Consumer spending remains cautious, impacting discretionary categories. The company expects Q4 gross margin to improve slightly but still be down 10-30 bps. TSCO plans to offset tariff refund lapses with vendor negotiations and cost savings.