Oppenheimer Maintains Outperform on PetSmart

Oppenheimer is out with its report today on Petsmart

, maintaining Outperform. In its report, Oppenheimer writes, "We look very favorably upon the above-plan Q2 (Jul.) results and higher FY11 (Jan. 2012) guidance that PetSmart reported last night. The power of the PETM model remains widespread. In Q2, sales accelerated, gross margins strengthened, and management kept a lid on expense growth. We recently lifted our rating on PETM to Outperform as part of a broader positive call on Hardlines Retail. PETM enjoys one of the best growth and return outlooks amongst leading chains. We believe the company focus on cash flows and aggressive share repurchases is becoming the optimal operating model within the Hardlines Group." Oppenheimer maintains a $49 PT on PETM. At the time of posting, shares of PETM were trading at $40.95, down 1.47% from Wednesday's close.