On Dec 07, major Wall Street analysts update their ratings for $Petco Health and Wellness (WOOF.US)$, with price targets ranging from $5 to $6.
Morgan Stanley analyst Simeon Gutman maintains with a hold rating, and adjusts the target price from $5 to $6.
Evercore analyst Oliver Wintermantel maintains with a hold rating, and adjusts the target price from $4 to $5.
RBC Capital analyst Steven Shemesh maintains with a buy rating, and adjusts the target price from $5 to $6.
Wedbush analyst Seth Basham maintains with a buy rating, and adjusts the target price from $5.5 to $6.
Furthermore, according to the comprehensive report, the opinions of $Petco Health and Wellness (WOOF.US)$'s main analysts recently are as follows:
Petco's adoption of strategic initiatives aimed at business enhancement appears promising, showing signs of stabilization. However, the perceived risk/reward balance is considered broad, with significant potential variations in outcomes.
Petco's Q3 results were modestly beyond expectations, and the enhancement of EBIT margins indicates the company's successful strategies, according to an analyst. Despite a sharp retracement from its 2022 peak, there is a belief that in the near term, mix, market share pressures, and company-specific aspects will influence earnings and stock performance through 2025. Over a longer horizon, the company is viewed positively due to its strong position within the appealing pet industry.
The company delivered another consistent quarter marked by sequential top-line improvement and margin efforts, which led to a 13% year-over-year EBITDA growth. Petco's consistent performance and margin progress are expected to help the stock close the multiple gap relative to its peers.
Petco's third quarter results surpassed comparable and EBITDA expectations, however, its fourth quarter guidance slightly fell short of expectations. The outlook for the fourth quarter is considered appropriately conservative given the dynamic environment, but there is potential for improvement as Petco's profit-first strategy appears to be fostering margin enhancement through supply chain savings and operational efficiencies.
Petco's Q3 update appears favorable, yet there remains hesitancy to pursue aggressively due to below-expectations Q4 guidance, persisting limited visibility, and significant ongoing tasks.
Here are the latest investment ratings and price targets for $Petco Health and Wellness (WOOF.US)$ from 4 analysts:
Note:
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