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UPDATE: Morgan Stanley Initiates PetSmart with Overweight on Fast Growth

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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.

Posted-In: Morgan StanleyAnalyst Color Price Target Initiation Intraday Update Analyst Ratings

 

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