12:30 PM EDT, 04/25/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of $253, up $5, is 24.5x our '24 EPS view of $10.33 (up $0.01; '25's down $0.13 to $11.43), a premium to the three-year forward P/E mean of 22.4x. Q1 EPS of $1.83 (+10.9% Y/Y) beat by $0.11 on revenue of $3.4B (+2.9%), in line with consensus. Top-line growth was driven by a comp sales increase of 1.1% (+1.3% transaction growth, -0.2% average ticket) and new store sales of 1.8%. TSCO sees itself benefiting from share gains and big ticket item strength. Gross margin of 36% (+50 bps) benefited from lower transport costs and cost management. SG&A margin of 28.2% (+10 bps) benefited from expense pushback to Q2. Despite the Q1 beat, TSCO maintained its 2024 guidance as it believes the worst of service vs. good spend behaviors is largely in the rearview mirror. The distribution center opening is expected to pressure margins. Balancing this is TSCO's low price strategy, which has grown volumes and potential garden center benefits. With shares trading at a premium, we see benefits as fully valued.