UPDATE: Deutsche Bank Reiterates on PetSmart on Recent Adoption Data
In a report published Monday, Deutsche Bank analyst Mike Baker reiterated a Sell rating on PetSmart (NASDAQ: PETM), but lowered the price target from $65.00 to $60.00.
In the report, Deutsche Bank noted, “Same shelter data provided by Pethealth Inc. (PTZ:TSX) shows that adoptions from “same shelters” through PETM stores that use 'PetPoint' software were down 6.0% in calendar 4Q13, vs a 1.2% increase in total shelter adoptions using PetPoint software during that time. From calendar 1Q10 to 1Q13, the PETM growth rates were either above the total or within 3% in 12 of the 13 quarters. But, for the last three calendar quarters, PETM's y/y growth rates in this subset of adoptions have been trending 7% to 11% worse than the total.”
PetSmart closed on Friday at $64.93.
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