PetSmart (PETM) Removed from Wedbush Best Ideas List

January 16, 2014 10:57 AM EST
Get Alerts PETM Hot Sheet
Price: $82.98 --0%

Rating Summary:
    2 Buy, 18 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Wedbush maintained an Outperform rating on PetSmart (NASDAQ: PETM) and lowered its price target to $78.00 (from $82.00). The stock was also removed from the company's Best Ideas List.

"We see no catalysts to drive the stock higher near-term due to further senior management changes that create a lack of visibility on timing to fix recent execution issues or a return to the historical "fishbone" model for earnings growth of 13-18%, and incrementally, more recent lack of transparency by management on financial results," said analyst Joan Storms.

"Nevertheless, we are maintaining our OUTPERFORM rating due to what we believe is an attractive valuation, annual free cash flow in excess of $500 million and shareholder-friendly buyback and dividend programs to provide support for the stock, and the absence of a corresponding negative preannouncement for Q4," added the analyst.

For an analyst ratings summary and ratings history on PetSmart click here. For more ratings news on PetSmart click here.

Shares of PetSmart closed at $65.48 yesterday.

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