Morgan Keegan Lowers Estimates On VCA Antech

According to Morgan Keegan, VCA Antech (NASDAQ: WOOF) reported second quarter EPS of $0.45, in line with estimate and $0.01 above consensus, while same-store sales were slightly weaker than estimated.

Morgan Keegan said that it has found VCA Antech's same-store growth to be highly correlated to consumer confidence, which remains weak. “We are lowering same-store growth assumptions going forward, assuming a slower ramp. As a result, we are lowering our 2012 EPS estimate from $1.72 to $1.62. We are also substituting a 15x (1x PEG) target multiple for our prior 17x, resulting in a $23 price target. We would wait for higher consumer confidence before buying shares.”

VCA Antech closed yesterday at $19.89.