DA Davidson Cuts TSCO Price Target to $40 After Q1 Miss
DA Davidson trimmed its Tractor Supply target from $50 to $40 but held a Buy rating after a Q1 earnings miss and soft discretionary spending.
DA Davidson analyst Michael Baker just slashed his price target on Tractor Supply (TSCO) from $50 down to $40. That's a $10 haircut. But here's the thing — he's keeping his Buy rating intact, which tells you he still sees upside from current levels.
The cut comes after TSCO posted a Q1 earnings miss and showed no signs of a quick rebound in discretionary spending. Rural lifestyle shoppers are clearly pulling back on non-essential purchases, and that's squeezing the top line harder than the bulls expected.
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Here's the contrarian angle worth watching: TSCO is now trading at its lowest price-to-earnings valuation in a decade. That's not nothing. Cheap stocks get cheaper, sure — but decade-low multiples on a proven retail operator tend to get attention from value-focused buyers eventually.
Management isn't panicking either. The company reaffirmed its full-year 2026 guidance, still projecting 1% to 3% comparable sales growth. That's not explosive, but it's not a warning sign either. They're threading the needle on expectations in a tough consumer environment.
If you're trading TSCO, the setup is simple: a beaten-down stock, a reduced but still-bullish analyst target, and a management team standing behind its numbers. The risk is that weak discretionary trends drag on longer than expected. The reward is a decade-cheap entry point on a durable rural retail franchise. Continue reading at Insider Monkey.
