Piper Jaffray Upgrades Tractor Supply Company (TSCO) to Overweight

Piper Jaffray upgraded Tractor Supply Company (NASDAQ: TSCO) from Neutral to Overweight with a price target of $116.00 (from $88.00), saying they are bullish on near-term and long-term fundamentals.

Analyst Peter Keith commented, "We are upgrading shares of TSCO to Overweight and raising our price target to $116 (from $88) ahead of the Q2 print scheduled for 7/22. Our more positive view is based on both short-term and longer-term fundamentals. Near-term, we believe Q2 benefited from a strong season in riding and zero turn mowers. Longer-term, we believe EPS is poised to accelerate through at least 2016 as a result of improving trends in both comp and gross margin expansion. We believe TSCO's premium valuation will continue to be supported by the quality and consistency of the business model and management team, and TSCO shares can outperform through ongoing upside to EPS estimates. We are raising our EPS est for 2015 to $3.12 and 2016 to $3.70 (vs. consensus of $3.07 and $3.55 respectively). Our $116 PT is based on 27x (up from 25x due to improved EPS growth) 2017 EPS of $4.30."

For an analyst ratings summary and ratings history on Tractor Supply Company click here. For more ratings news on Tractor Supply Company click here.

Shares of Tractor Supply Company closed at $93.92 yesterday.

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