Nomura Securities Downgrades Tractor Supply (TSCO) to Neutral, Sees Limited Upside

Nomura Securities downgraded Tractor Supply Company (NASDAQ: TSCO) from Buy to Neutral with a price target of $120.00 saying positives are priced in.

Analyst Aram Rubinson comments, "We have raised our price target five times in two years. At $116, the shares are once again pushing up against our price target. This time around, we do not have a compelling reason to raise our target. We are therefore moving to a Neutral rating. TSCO is rapidly becoming one of the premier merchants in retailing. Opportunity remains abundant for TSCO. We continue to see room for comps and margins to expand. We believe comps can sustain 4-5% growth, comprised of 1-2% from new stores ramping, 1-2% from inflation and 1-2% from innovation. In our view, however, the market is currently factoring in the prospect for strong growth. Over time, we hope to make our way back to recommending TSCO. After all, we believe it is an excellent company. To get there we would like to see a greater variance from Street estimates (driven by an accelerated comp trajectory or signs of GM progress) or a pullback in the shares."

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 $116.38 yesterday.

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