7 Reasons To Like Tractor Supply Courtesy Of Gordon Haskett

Gordon Haskett Research Advisors gave seven reasons to buy Tractor Supply Company TSCO in a note this week.

Gordon Haskett's Chuck Grom initiated coverage of Tractor Supply Company with an Accumulate rating and $86 price target.

Tractor Supply boasts seven company-specific initiatives that should help drive sales over time, Grom said in the initiation note:

The Neighborhood Club loyalty program is just over one year old and has already attracted over 8 million customers, which should rise to 10 million by the end of the year.
Tractor Supply is rolling out its Stockyard Kiosks from 200 at the start of 2018 to 800 by the end of the year. Encouragingly, the expansion should generate an 80-90-basis point lift on an investment of a few thousand dollars per location.
The company relaunched its private label credit card with a focus on integrating its loyalty program to drive incremental sales.
After 23 consecutive quarters of double-digit growth in e-commerce sales, Tractor Supply still has plenty of runway ahead, as online sales represent just 2.5 percent of total sales which is below "quasi-peers" such as Home Depot Inc HD and Lowe's Companies, Inc. LOW.
A new store format, "One Tractor," is generating positive "early reads" from a top-line perspective and among employees and customers at five locations.
Tractor Supply continues to increase its product assortment through category expansions, new national brands and emerging category trends.
The company has the resources to ramp new store openings through at least fiscal 2020.

Tractor Supply shares were up 1.53 percent at $76.77 at the time of publication Wednesday afternoon.

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