UPDATE: Morgan Stanley Initiates PetSmart with Overweight on Fast Growth
Morgan Stanley initiates its coverage on PetSmart (NASDAQ: PETM) with an Overweight rating and a price target of $75.
Morgan Stanley says, "We see four drivers of upside to consensus EPS and a bullish view, 1) Stable 3-5% industry growth and PETM modestly increasing share, 2) 7-10% services growth, 3) 100-200 bps of margin leverage from premium/proprietary mix and efficiency, 4) A focus on increasing cash flow and return of capital."
PETM closed at $66.35 on Tuesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.