Shares of Tractor Supply Co. were knocked lower Tuesday, after the retailer of farm and ranch products was downgraded two days before it reports quarterly results, as BofA Securities’ Jason Haas warned investors that they’ll likely be disappointing.
Haas cut his rating on the stock TSCO to neutral, after being at buy for the past 13 months. He slashed his price target by 16%, to $226 from $270. The Tennessee-based company is slated to report second-quarter results on Thursday, before the opening bell. The FactSet consensus for earnings per share is $3.92, and the company’s latest full-year EPS guidance is for $10.30 to $10.60.
During a time of similar commodities deflation in 2014, Haas noted that Tractor Supply’s comps were pressured and the stock tumbled more than 25%.