Truist Cuts Tractor Supply to Hold as Same-Store Growth Outlook Dims

Key Moments

Truist downgraded Tractor Supply Co to Hold from Buy and cut its price target to $55 from $67.
The firm now expects 2026 to mark a fourth straight year of below-target comparable sales.
Meanwhile, rising competition from Walmart and Amazon in rural delivery drove the cautious outlook.

Rating and Price Target Cut

Tractor Supply Co shares slipped about 1% in premarket trading after Truist downgraded the stock to Hold from Buy.
At the same time, the brokerage reduced its price target to $55 from $67.
The move followed weaker fourth-quarter trends and a softer sales outlook for 2026.

Fourth-Quarter Performance Disappoints

According to Truist, Tractor Supply’s comparable sales likely ended the fourth quarter roughly flat.
This outcome fell short of the firm’s earlier forecast for 3.5% growth.
However, Truist said it remains hard to identify a single cause for the miss.

Sales started the quarter on a soft note.
Later, trends improved through mid-November and then stabilized.
Even so, demand did not accelerate as colder weather arrived.

Muted Growth Expectations for 2026

As a result of the weak exit rate, Truist now expects early 2026 growth to remain below the company’s
long-term comparable sales target of 3% to 5%.
Previously, the firm had expected stronger momentum from internal initiatives.

Metric / Assumption	Previous View	Updated View / Commentary
4Q comparable sales	3.5% growth forecast	Likely flat, per Truist
Long-term comparable sales target	3% – 5%	Early 2026 expected to remain below target
Impact from store maturation, Fusion remodels, garden expansions	>250 basis points expected	Comps mostly flat over past three years

Company Initiatives Falling Short

Previously, Truist assumed that store maturation, Fusion remodels, and garden center expansions
would add more than 250 basis points to comparable sales.
Instead, comps have stayed mostly flat over the past three years.
The firm cited post-pandemic normalization and deflationary pressures.

As a result, Truist suggested the core business may be seeing low-single-digit declines,
or that these initiatives are delivering less benefit than expected.

Competitive Pressures Intensify

In addition, Truist highlighted rising competition in rural markets.
Specifically, Walmart and Amazon continue to expand delivery capabilities.

Walmart can now reach about 95% of U.S. households within three hours.
Meanwhile, Amazon plans to invest $4 billion in its rural delivery network in 2025.
As these networks expand, competition on price, selection, and speed is likely to increase.

Valuation and Positioning

Given limited near-term catalysts and the risk of further valuation pressure,
Truist adopted a more cautious stance.
For now, the firm said it prefers to remain on the sidelines.