Petsmart (PETM)

[chmcnfunds]

Petsmart (PETM) – Investment Analysts’ Recent Ratings Updates

Posted by: Masoud Bidgoli Posted date: March 13, 2013 In: Analyst Articles - Company Sum, Markets

Petsmart (NASDAQ: PETM) received a number of ratings updates from brokerages and research firms in the last week:

Petsmart had its price target raised by analysts at Goldman Sachs to $74.00. They wrote, “Core growth drivers – notably strong increases in sales of superpremium foods – remain intact, though they are cycling years of big gains, and are unlikely to accelerate. The firm specifically indicated that dog is moderating from torrid growth, while cat actually gained momentum. … PETM asserts, and our checks concur, that the online market is not big enough to dent PETM’s sales yet. … We think PETM’s current forward growth rate supports the 16.5X forward multiple embedded in our price target.”

Petsmart was downgraded by analysts at Piper Jaffray from an “overweight” rating to a “neutral” rating. They now have a $68.00 price target on the stock. They wrote, “We are downgrading PETM shares to Neutral and reducing our price target from $82 to $68 following somewhat disappointing Q4 results. We continue to like the industry backdrop (with strong growth and fragmented competition), PETM’s solid execution and differentiation, and its positioning in the secular pet food trade-up theme. However, Q4 appears to be an inflection point for decelerating growth in the coming year(s), after 3 years of spectacular growth. Sales driving initiatives for 2013 appear less exciting compared to recent years, and the gross margin drivers around price optimization and localized assortment are not kicking in as quickly as we thought.”

Petsmart had its price target lowered by analysts at Jefferies Group from $71.00 to $66.00. They now have a “hold” rating on the stock.

Petsmart had its price target lowered by analysts at Bank of America to $80.00. They wrote, “?PetSmart reported 4Q EPS $0.01 below our forecast, though above guidance, due to slightly lower-than expected sales with 4.6% comps. Management noted that sales experienced volatility during 4Q, and we estimate comps likely had ~100 bps impact from Hurricane Sandy. That said, there has been sequential improvement 1Q-to-date, and we remain positive on company and industry fundamentals. We reiterate our Buy rating and believe that further improvement to already-favorable pet industry and housing metrics will provide potential upside.”

Petsmart had its price target lowered by analysts at UBS AG from $80.00 to $77.00. They now have a “buy” rating on the stock.

Petsmart had its price target lowered by analysts at Telsey Advisory Group to $75.00.

Petsmart had its “overweight” rating reaffirmed by analysts at Barclays Capital. They now have a $75.00 price target on the stock.

Petsmart was given a new $77.00 price target on by analysts at Morgan Stanley. They now have an “overweight” rating on the stock.
Petsmart was downgraded by analysts at Piper Jaffray from an “overweight” rating to a “neutral” rating.

Petsmart had its price target lowered by analysts at Deutsche Bank from $69.00 to $64.00. They now have a “hold” rating on the stock.
Petsmart opened at 61.91 on Wednesday. Petsmart has a 1-year low of $54.20 and a 1-year high of $72.75. The stock’s 50-day moving average is currently $65.17. The company has a market cap of $6.592 billion and a price-to-earnings ratio of 17.70.

PetSmart, Inc. supplies products, services and solutions for the lifetime needs of pets. The Company operates a website for pet supplies, foods and different animal needs.
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http://www.mideasttime.com/petsmart-petm-investment-analysts-recent-ratings-updates/2682/

Still plenty of upside.

PETM