Wedbush Reiterates Outperform on PetSmart on Multiple Positive Factors

In a report published Tuesday, Wedbush analyst Joan Storms reiterated an Outperform rating and $82.00 price target on PetSmart PETM. In the report, Wedbush noted, “Maintain OUTPERFORM rating on this Best Ideas List Stock as we believe PetSmart still remains quite relevant and that the current valuation is attractive. 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 $72.92.