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UBS Raises Price Target and Estimates on PetSmart (PETM); Sees Sustained Sales and Margin Benefit

May 23, 2012 10:46 AM EDT Send to a Friend
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Price: $70.06 -0.67%

Rating Summary:
    3 Buy, 15 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 21 | Down: 25 | New: 14
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UBS maintains a 'Buy' on PetSmart (NASDAQ: PETM) price target raised from $64 to $67.

Analyst, Michael Lasser, said, "As an investor, finding those situations where a company has more control over its own destiny is a preferred situation. PetSmart fits into that bucket and its 1Q’12 reinforced that categorization. With a 7.4% comp (v. 4% UBS estimate), PETM showed that it can press levers such as introducing new products, resetting merchandise displays, and increasing its advertising spend, which combined to have a positive impact. Further, when sales trends are healthy, it leads to related benefits like better margin performance and stronger free cash flow generation."

UBS raises FY13 from $3.12 to $3.30 and FY14 from $3.43 to $3.63.

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 $55.62 yesterday.

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