Bank Of America Sees Sunnier Days Ahead For Tractor Supply Company

In a report published Friday, Bank of America analyst Denise Chai reiterated a Buy rating and $80.00 price target on

. In the report, Bank of America noted, “Excluding home furnishings (especially PIR and TCS), Tractor Supply has been the worst performer among our Hardline Retail coverage YTD. Share price weakness (down -22% YTD vs +6% S&P) has been the result of a perfect storm of 1) comp deceleration caused by deflation and weather, 2) accelerated SG&A investments to support long-term growth, and 3) market rotation out of growth stocks. We reiterate our Buy rating as we think: 1) comps will accelerate in 2H14 despite continued deflation as weather normalizes and 2) investments will soon be anniversaried and will gradually start to leverage.” Tractor Supply Company closed on Thursday at $60.65.