UPDATE: Wedbush Raises PT on PetSmart Following Investor Meetings

In a report published Tuesday, Wedbush analyst Joan Storms reiterated an Outperform rating on PetSmart

, and raised the price target from $80.00 to $82.00. In the report, Storms noted, “We recently hosted investor meetings for PETM management in Los Angeles and came away more confident that investor concerns are overdone regarding: 1) the departures of the CEO and CFO suggesting that the company's future is not as bright, 2) that online competitors will erode market share, and 3) that growth will slow as a result of premium food saturation. Our bull thesis is driven by our belief that the company's destination stores, combined with an improving online experience, best position the company versus competitors from both a bricks & mortar and online perspective. We believe pet owners will continue to be drawn to PETM's entertaining one-stop-shopping experience with broad assortments, exclusive hot products, and convenient services. We are also bullish on the company's organic growth opportunities and commitment to drive total shareholder returns. Finally, we believe valuation is attractive, especially utilizing peer group FCF multiples.” PetSmart closed on Monday at $66.81.