UPDATE: Nomura Reiterates Buy Rating, Raises PT on Tractor Supply Company Following 4Q14 EPS Report

In a report published Thursday, Nomura analyst Jessica Schoen Mace reiterated a Buy rating on

, and raised the price target from $89.00 to $92.00. In the report, Nomura noted, “Tractor Supply reported 4Q14 EPS of $0.81, above our estimate and consensus. We are increasing our target price to $92. Gross margin increased 16 bps in the quarter, better than our expectations. SG&A including depreciation leveraged 66 bps on higher sales volumes and expense control. We expect more modest leverage heading into 2015, with a comp leverage point of 3.5%-4.0%. Finally, we expect analytical tools such as demand planning and inventory allocation to continue to be a priority and we believe we are very early in seeing the benefits from these systems. Supply chain investments such as the Southwest distribution center and two mixing centers in Texas should help drive efficiencies and ultimately reduce some costs. While it is still early, the West seems to be an encouraging region for the company and we expect next year's 115 store openings to be spread evenly across the West, Central and East regions, along with the conversion of the Del's stores.” Tractor Supply Company closed on Wednesday at $79.86.