UPDATE: JP Morgan Upgrades Tractor Supply to Overweight on Pullback

JP Morgan raised its rating on Tractor Supply

from Neutral to Overweight and increased its price from $90 to $100. JP Morgan noted, "Fundamentally we see the following as key reasons to buy the stock: (1) with 8% footage growth in a fragmented end market that has barriers to entry from the likes of AMZN and considering still early stage gross margin initiatives, TSCO remains a core growth holding and we believe it will maintain a premium valuation; (2) the drag from the warm early spring and drought pressures are getting behind us and the mix shifts to consumables and cold-sensitive products in the back half (against recordwarmth levels a year ago); (3) the business has accelerated in June and into July suggesting TSCO can thread the needle through tough 3Q comparisons into a better backdrop in 4Q and beyond (while management appropriately kept a conservative outlook) Tractor Supply closed at $79.05 on Wednesday.