PetMed Express (NASDAQ: PETS) Downgraded to Neutral
March 18, 2010 8:07 AM
Analysts at Piper Jaffray downgraded PetMed Express (NASDAQ: PETS) from Overweight to Neutral.
The analysts explain, “We are downgrading shares of PETS from Overweight to Neutral this morning based strictly on valuation, as the stock has surged through our $21 price target this week and is up over 14% since the beginning of March.” They go on to say, “We expect that recent moves on the part of some flea and tick manufacturers to sell direct to specialty retailers will be neutral in the short and medium term to PETS, with stronger margins offsetting some increase in competition.”
Piper Jaffray noted that it has confidence in the PedMed Express business model, but would have to see evidence of stronger future growth before becoming bullish on the stock. Analysts maintain a price target of $21 for the stock.
