Market Overview

KeyBanc Upgrades Underappreciated Central Garden And Pet Co.

KeyBanc Upgrades Underappreciated Central Garden And Pet Co.

Central Garden & Pet Co (NASDAQ: CENT), which distributes products for the lawn and garden and pet supplies market, has an attractive risk/reward profile at current levels, according to an analyst at KeyBanc Capital Markets.

The Analyst

KeyBanc analyst Jason Gere on Monday upgraded Central Garden & Pet Co. from Sector Weight to Overweight and assigned a price target of $44.

The analyst attributed the upgrade to a lack of stock price appreciation since a solid 2017 fourth quarter results posed in November.

The Thesis

Central Garden & Pet Co. is well-positioned to grow top- and bottom-lines above the household and personal care, or HPC group, average in fiscal year 2018 and beyond, Gere said in a note.

Gere listed the following as what he likes about the company:

  • Healthy categories and market share gains;
  • Margin opportunities that could potentially provide long-term earnings power;
  • Benefit of tax reform to 2018 earnings per share;
  • Management's aggressive M&A strategy and new JVs; and
  • Successful track record of the management.

Gere said the company's earnings could experience quarterly volatility due to factors such as JV and the lack of extra week in 2018. The analyst said this has already been digested by the Street.

The analyst mentioned understanding of commitment to PL lawn and garden strategy, which Central Garden & Pet Co. makes post year one as another pushback.

The Price Action

Central Garden & Pet Co. shares are up over 23 percent over the past year.

At time of writing, shares were up 6.7 percent to $40.36.

Related Links:

The Technician's Playbook: 11 Sector Pair Trades

Jefferies Sees Beauties And Beasts In The Modern Cosmetic Space

Latest Ratings for CENT

Aug 2019DowngradesBuyHold
Jan 2018UpgradesSector WeightOverweight
Dec 2017ReinstatesBuy

View More Analyst Ratings for CENT
View the Latest Analyst Ratings

Posted-In: Jason Gere KeyBanc Capital MarketsAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga


Related Articles (CENT)

View Comments and Join the Discussion!

Latest Ratings

WUBABOCOM InternationalDowngrades
DLTROTR GlobalUpgrades
ARCCCompass PointDowngrades
GTYHCitiInitiates Coverage On7.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Spin-Off Should Allay Many Concerns Regarding Altice; Barclays Upgrades

RBC Advisor Services Packages Fintech Functionality With Clearing And Custody