UPDATE: Morgan Stanley Initiates PetSmart with Overweight on Fast Growth

Morgan Stanley initiates its coverage on PetSmart

with an Overweight rating and a price target of $75. Morgan Stanley says, "We see four drivers of upside to consensus EPS and a bullish view, 1) Stable 3-5% industry growth and PETM modestly increasing share, 2) 7-10% services growth, 3) 100-200 bps of margin leverage from premium/proprietary mix and efficiency, 4) A focus on increasing cash flow and return of capital." PETM closed at $66.35 on Tuesday.