PetSmart (PETM) Ad Spend Sets Stage for Q4 Guidance Beat

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Wells Fargo maintained a Market Perform rating on PetSmart (NASDAQ: PETM) and raised its price target to $67 to $71 (from $64 to $68). PETM recently reported quarterly earnings and revenue that beat expectations, and raised its guidance.

Commenting on results, analyst Matt Nemer said "While guidance factors in a ramp in ad spend, it does not factor in an acceleration in comps, setting the stage for a strong Q4 if marketing proves successful."

"Comparisons do get more difficult in H1 2013, but PetSmart appears a relatively safe place with strong industry fundamentals and less seasonal exposure for investors looking to adopt a more defensive approach," continued Nemer.

Wells Fargo raised Q4 EPS estimates from $1.18 to $1.19, 2012E from $3.37 to $3.50 and 2013E from $3.70 to $3.91.

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 $64.85 yesterday, with a 52 week range of $45.27-$72.75.

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