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Wedbush Reiterates an 'Outperform' on PetSmart (PETM); Raises PT & Estimates

October 16, 2009 9:29 AM EDT
PETM Hot Sheet
Rating Summary:
    8 Buy, 5 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Wedbush reiterates an Outperform rating on PetSmart (Nasdaq: PETM), raises price target to $29.

Wedbush analyst says, "PetSmart raised Q3 EPS guidance to $0.25-$0.29 (from $0.20-0.24) due to better than expected product margins and lower than expected expenses; still sees flat comps...The company expects long-term earnings growth of 13%-18%. Raising our full-year EPS forecast to $1.53 (from $1.47) and our 2010 EPS to $1.77 (from $1.64). Raising our price target to $29 (from $26), which assumes PETM should trade at 16.5x our revised 2010 EPS estimate of $1.77 or at a slight premium to our revised longer-term projected growth rate of 15.5% (previously 15.0%)...Reiterate Outperform rating on this Best Ideas List stock as we believe PETM is best positioned specialty pet retailer when more discretionary pet spending resumes with a recovering economy."

To see more analyst ratings on PETM Click Here.


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