Petco Heath & Wellness Co. Inc. (WOOF) PT Raised to $3 at Citi

Citi analyst Steven Zaccone raised the price target on Petco Heath & Wellness Co. Inc. (NASDAQ: WOOF) to $3.00 (from $2.75) while maintaining a Neutral rating.

The analyst comments "WOOF put up a solid 4Q print for an arguably low bar. For FY25, the biggest takeaway is that cost savings, EBITDA growth, and cash flow are taking priority over sales growth in FY25. New WOOF CFO Sabrina Simmons sounded most confident on the ability to find cost savings and trim fat in the business, noting there are “many levers” to pull with regard to both gross margin and SG&A. Retail 101 principles are the primary levers of costs savings. For now, that should help shares see a relief rally. The path gets more difficult to grow sales and regain market share against a competitive industry backdrop. Stay Neutral. We slightly raise our EBITDA estimates and our TP to $3 (was $2.75) on ~4.5x FY26E EBITDA."

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