Piper Jaffray Remains Cautious On PetMed
Piper Jaffray has published a research report on PetMed Express (NASDAQ: PETS) despite the fact that operating challenges are currently troubling the company.
In the report, Piper Jaffray writes "We remain cautious on shares of PETS ahead of the company's FQ2 results, expected to be released before the markets open on Monday, October 18th. Steep discounts on top products late in the quarter should support top-line results, albeit at the expense of overall profitability. Further, lagging web traffic relative to year ago levels coupled with a still tough advertising market and more aggressive competition from specialty retailers and even veterinary clinics (partnering with distributors) has us concerned about future growth. Our estimates remain intact ahead of the quarter and we reiterate our Underweight rating and $14 PT on PETS."
PetMed Express closed yesterday at $16.57.
