Deutsche Bank Increases Price Target on Tractor Supply Co. to $55 (TSCO)

Deutsche Bank is out with its report today on Tractor Supply Co. TSCO, increasing its PT from $54 to $55. In a note to clients, Deutsche Bank writes, "TSCO reported 4Q10 EPS of $0.67 vs consensus of $0.62 on comps of 13.1%. While the better than expected sales did shift the mix, which negatively impacted gross margins, this was more than made-up for in SGA leverage. Also, direct margins were up y/y on the strength of the company's multiple GM initiatives. These results are very much in line with our Buy-rated thesis that we laid out in our initiation, and we reiterate our Buy rating. Our $55 PT remains based on 18x our FY12 estimate." Shares of TSCO are trading today at $50.75, up 4.53% from Wednesday's close.