UPDATE: Deutsche Bank Raises PT to $71 on PetSmart on Strong Quarter
Deutsche Bank reiterated its Hold rating on PetSmart (NASDAQ: PETM) but raised its price target from $68 to $71.
Deutsche Bank said, "PetSmart reported another strong quarter with upside across the board. Comps came in at 6.5% vs consensus of 5% driven by continued strength in higher-end consumables. This upside helped PETM leverage occupancy ahead of expectations, driving 100 bps of gross margin gains, and leverage on expenses. The company also benefitted from easier advertising expense compares. We maintain our Hold rating as we balance strong sales and gross margin trends with the company's premium."
PetSmart closed at $66.25 on Wednesday.
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