UPDATE: Bank of America Raises PO to $60 on PetSmart

Bank of America raises its price objective to $60 on PetSmart (NASDAQ: PETM) as it reaffirms its Buy rating on shares to reflect acceleration on pet population.

Bank of America says, "An unexpectedly strong recovery in pet adoptions in the last few months is driving significant growth in the pet population. Increased pet adoptions are expected to lift demand for higher-margin hardgoods and services, and hence we are raising our EPS for 2012/13E by 4/7% to $3.17/$3.89 (prior $3.05/$3.63). Our estimates are 5/13% above the Street ($3.01/$3.45) for 2012/13, and our new PO of $60 implies 19x 2012E P/E, at the higher end of its historical range."

PETM closed at $53.61 a share yesterday.