Market Overview

UPDATE: Piper Jaffray Downgrades Tractor Supply Company on Valuation

Share:
Related TSCO
Morgan Stanley Reiterates Equal-Weight, Raises Price Target On Tractor Supply Company On Multiple Positive Factors
Nomura Raises Price Target On Tractor Supply Company Following 4Q14 EPS Report
Don't Let Low Dividend Yields Keep You From Investing In These Great Companies (Seeking Alpha)

In a report published Thursday, Piper Jaffray analyst Peter J. Keith downgraded Tractor Supply Company (NASDAQ: TSCO) from Overweight to Neutral, but raised the price target from $120.00 to $121.00.

In the report, Piper Jaffray noted, “We are downgrading TSCO from Overweight to Neutral but slightly increasing our price target to $121 from $120. While we do not favor valuation downgrades, TSCO shares are +37% YTD and have drifted to 27x FTM P/E (a 5-year high valuation). At the same time EPS growth has slowed to the high teens over the last 12 months. As long-time supporters of the TSCO story, we continue to hold a high view of management, the company's unique niche, and its long-term growth potential. Looking forward, we see no risk to the slightly increased guidance range of $4.36-$4.44, but note upward revisions to the range now appear modest as Q2 (TSCO's ‘Christmas Quarter') only saw slight upside. Separately, we have slight concern that corn price declines y/y may minimize the historic inflation tailwind or turn it into a modest deflation headwind over the coming 12 months which could slightly pressure EPS growth.”

Tractor Supply Company closed on Wednesday at $121.27.

Latest Ratings for TSCO

DateFirmActionFromTo
Feb 2015OppenheimerUpgradesPerformOutperform
Jan 2015NomuraMaintainsBuy
Jan 2015JP MorganMaintainsOverweight

View More Analyst Ratings for TSCO
View the Latest Analyst Ratings

Posted-In: Peter J. Keith Piper JaffrayAnalyst Color Downgrades Analyst Ratings

 

Related Articles (TSCO)

Around the Web, We're Loving...