UPDATE: Deutsche Bank Raises PT to $53 on PetSmart

Deutsche Bank raises its price target on Hold-rated PetSmart PETM on the company's expense leverage coming in better than expected. Deutsche Bank says, "PETM reported 4Q11 EPS of $0.91 on comps of 5.5%. Gross margins were down 20 bps however on lower mix-induced merchandise margins. This was offset by better than anticipated expense leverage however, though we note that the actual tax rate vs guidance of 38.5% at the midpoint helped EPS by $0.03. Without this, EPS was $0.88 vs consensus of $0.90. We maintain our Hold rating as we balance strong sales trends with in line valuation, and note that gross margins could be under near term pressure during product resets in 1H12." PETM closed at $55.74