In a report published Thursday, Morgan Stanley analyst Simeon Gutman reiterated an Equal-Weight rating on Tractor Supply Company (NASDAQ: TSCO), but lowered the price target from $70.00 to $65.00.
In the report, Morgan Stanley noted, “We remain on the sidelines with TSCO and take our price target to $65 from $70 as the stock's risk/reward seems fair. The Q2 shortfall (a 7% EPS miss) is not awful in an absolute sense and the longer-term growth story remains intact in our view. However, Q3 compares are more challenging (comps and EPS), implying a possible third quarter in a row of below-average growth. In addition, TSCO's P/E multiple, even after last night's 5% aftermarket decline, at 24x 2014 EPS is above the 5 year average of 21x.”
Tractor Supply Company closed on Wednesday at $61.38.
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