Deutsche Bank Initiates TSCO At Buy, $54 PT

Deutsche Bank is initiating coverage of Tractor Supply Company (NASDAQ: TSCO) with a Buy rating and a $54 price target.

“Key investment themes include favorable demographics that are helping to support above-average unit growth, multiple comp and margin drivers, and above average operating margin and EPS growth,” Deutsche Bank writes.

“These trends, along with minimal overlap with key big box competitors and strong vendor relationships are driving above average sales growth that TSCO is turning into above average operating income growth. This, along with a strong balance sheet and cash flows that allow TSCO to internally fund its growth initiatives form the basis of our Buy rating.”

Tractor Supply Company closed Friday at $46.35.