Truist Securities downgraded Tractor Supply from Buy to Hold, citing expectations for muted growth through 2026. The brokerage cut its price target to $55 from $67, pointing to weaker-than-expected fourth-quarter trends. Shares fell roughly 1% in premarket trading following the analyst note.

The downgrade reflects a potential fourth straight year of below-target comparable sales for the retailer. Truist noted comparable sales were likely flat in the fourth quarter, well below its prior 3.5% forecast. The firm struggled to pinpoint a single cause but observed soft sales early in the quarter that never accelerated as hoped.

Truist now expects growth to remain below Tractor Supply’s long-term 3% to 5% target in early 2026. The analyst questioned the effectiveness of store remodels and garden center expansions, which were supposed to add over 250 basis points to sales. Meanwhile, rising competition from Walmart and Amazon’s expanding rural delivery networks adds pressure.