Market Overview

UPDATE: Bank Of America Moves PetSmart To No Rating As Sale Or Merger Is Possible

Related PETM
Sell-Side's View On Whole Foods' New Activist Investor Slightly Cautious
What Everyone's Saying About Under Armour's New CFO

In a report published Tuesday, Bank of America analyst Denise Chai moved the rating on PetSmart (NASDAQ: PETM) from Underperform to No Rating, and removed the $48.00 price target.

In the report, Bank of America noted, “Jana Partners, disclosed on 7/3 a 9.9% stake in PETM, from a prior position of 5.1% of shares outstanding. Jana is now PETM's largest shareholder, followed by Longview (9.0%), Vanguard (7.6%) and JP Morgan (5.1%).

"In a letter disclosed in Jana's 13D filing, Jana stated that it believes PETM is undervalued and intends to engage in discussions with the company's board of directors concerning a review of strategic alternatives including: 1) exploring a sale of the company; 2) improving operating performance; 3) PETM's capital structure including providing for a significant return of capital to shareholders; 4) improving capital allocation; 5) improving disclosure to shareholders; and 5) management & board compensation.”

PetSmart closed on Monday at $68.95.

Latest Ratings for PETM

Nov 2014BarclaysMaintainsEqual-Weight
Nov 2014JefferiesMaintainsHold
Nov 2014Credit SuisseMaintainsNeutral

View More Analyst Ratings for PETM
View the Latest Analyst Ratings

Posted-In: Bank of America Denise ChaiAnalyst Color Downgrades Analyst Ratings


Related Articles (PETM)

View Comments and Join the Discussion!