Market Overview

UPDATE: Nomura Equity Research Downgrades PetSmart to Reduce, Lowers PT

Related PETM
Stocks Lower As Earnings Season Takes Back Seat To Geopolitical Uncertainties
PetSmart Spokesperson Comments To Benzinga On Jana Letter
Facing Activist Pressure, PetSmart Reviews Capital Structure (Fox Business)

In a report published Monday, Nomura Equity Research downgraded its rating on PetSmart (NASDAQ: PETM) from Neutral to Reduce, and lowered its price target from $72.00 to $55.00.

Nomura Equity Research noted, “We are lowering our opinion on PETM to Reduce from Neutral. After being staunch supporters for years with a Buy rating, we moved to Neutral in July 2012. Today we are taking a more cautious view. A reduction in our price target to $55 (from $72) anticipates multiple compression and lower estimates owing to ecommerce concerns, senior management change and margins that have reached a plateau. PETM is executing well. That, together with a valuable offering of Services, should keep shoppers loyal. Nonetheless, we worry that one of PETM‟s key competitive advantages may erode online. PETM is protected in the physical world as 70% of its food sales are not available at mass merchants. PETM margins have increased and we believe CEO to-be Lenhardt will lead PETM smartly.”

PetSmart closed on Friday at $69.99.

Posted-In: Nomura Equity ResearchAnalyst Color Downgrades Analyst Ratings

 

Most Popular

Related Articles (PETM)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters