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Nomura Securities Maintains a 'Buy' on Tractor Supply (TSCO); Cow Tipping Point

January 17, 2012 9:40 AM EST
TSCO Hot Sheet
Rating Summary:
    9 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Nomura Securities maintains a 'Buy' on Tractor Supply Company (NASDAQ: TSCO) price target of $89.00.

Nomura analyst, Aram Rubinson, said, "‘Cow tipping’ is the act of sneaking up on a sleeping, upright cow and knocking it down. In some ways this act resembles what TSCO is doing to its competitive set, which primarily consists of 12,000 local dealers. Tractor Supply is currently tinkering with 60 or so initiatives, which may tip the scales even further. The ‘forage/hay’ category is now rolled out in force to 150 stores. A full-scale rollout is on the horizon. Our research suggests the category can add as much as 4% to sales growth. Some worry about persistently tough comparisons or that an inflation ‘tailwind’ will turn into a ‘headwind’ in H2 2012. In our view, innovation and a rapidly consolidating competitive landscape should keep TSCO’s ‘line of sight’ clear for years to come."

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 $80.56 yesterday, with a 52 week range of $45.99-$81.13.


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