Loading...
Loading...
Deutsche Bank provided color on PetSmart
PETM after a meeting with its management. In a research report published today, Deutsche Bank remained optimistic about the company's prospects. It did not change its rating from Hold and price target from $46, however.
In the report, Deutsche Bank states, "We believe the biggest long term opportunity for PETM is in gross margins
as it relates to inventory management. In particular, we see opportunity in
optimizing store allocations and pricing as presently every store is assorted
similarly and product is priced the same throughout the country, with the
exception of hotels. PETM will need these drivers to achieve their 7%-12%
EBT growth goal on 4%-7% sales gains over time.
We expect a modest price increase in hotels this summer which should help
margins in the back half and help offset higher occupancy costs as PETM
has less incremental gains from lease renegotiations than in the past years."
In today's trading, PetSmart lost 0.11% and is currently trading at $44.83.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in