UPDATE: Jefferies Reiterates On PetSmart As Deal Speculation Is Driving Stock

In a report published Thursday, Jefferies analyst Daniel Binder reiterated a Hold rating on

, and raised the price target from $70.00 to $78.00. In the report, Jefferies noted, “PETM beat EPS expectations on expenses as it took 1x charges. PETM has hired lots of consultants to formulate a $200 million cost cutting plan and wring more savings and efficiencies out of the business over the next two years. We are giving them credit for it with some hesitation, since we have seen other retailers with plans like this come up short on flow through to EPS as top-line is pressured and ‘reinvestment' is necessary.” PetSmart closed on Wednesday at $78.19.