The analysts wrote, “PETM experienced accelerating sales trends to start off the year without the significant weather benefit that many of its hardlines peers have cited (and to the same point, PETM did not see a falloff in April). We believe this will lead to a favorable bias on the stock as the company is likely to deliver solid earnings upside, but expect the growth rate to decelerate over the year. While fundamentals remain solid, valuation balances our view. PETM continues to drive exclusivity and four-wall improvement with another food reset in 1Q (last done in ‘08), an aquatics reset, and expanded assortments with Toys ‘R Us and Bret Michaels partnerships.”
PETM has been the subject of a number of other recent research reports. Analysts at Goldman Sachs (NYSE: GS) raised their price target on shares of Petsmart from $56.00 to $61.00 in a research note to investors on Wednesday. Separately, analysts at Bank of America (NYSE: BAC) raised their price target on shares of Petsmart to $68.00 in a research note to investors on Wednesday. Finally, analysts at Jefferies Group (NYSE: JEF) raised their price target on shares of Petsmart to $57.00 in a research note to investors on Wednesday. They now have a “hold” rating on the stock.
Shares of Petsmart traded up 11.57% during mid-day trading on Wednesday, hitting $62.055. Petsmart has a 52 week low of $37.76 and a 52 week high of $59.36. The company has a market cap of $6.819 billion and a P/E ratio of 21.81.
Petsmart last announced its earnings results on Tuesday, May 22nd. The company reported $0.85 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.73 by $0.12. Petsmart ‘s revenue was up 7.3% compared to the same quarter last year. On average, analysts predict that Petsmart will post $0.60 earnings per share next quarter.
PetSmart, Inc. (PetSmart) is a specialty provider of products, services and solutions for the lifetime needs of pets.