Story updated at 9:40 a.m. to reflect market activity.
Tractor Supply fell 1.6% to $65.13.
The firm lowered its price target for the retailer to $70 from $80.
Analyst Brian Nagel wrote, "Fundamentally, TSCO represents one of the strongest operators in Hardlines, in our view. Longer-term prospects for the chain remain quite compelling. In the near term, we are concerned that the combination of limited EPS upside potential and a still elevated multiple will dissuade increasingly discerning Retail stock investors and keep a lid on outperformance potential for TSCO."
Despite the downgrade, Nagel wrote that 2014 if the year that Tractor Supply "grows into its multiple."
Separately, TheStreet Ratings team rates TRACTOR SUPPLY CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TRACTOR SUPPLY CO (TSCO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, good cash flow from operations, solid stock price performance and compelling growth in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."
Highlights from the analysis by TheStreet Ratings Team goes as follows: