Wedbush Comments on PetSmarts (PETM) Recent Actions, Number 1 Specialty Pet Retailer
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Price: $82.98 --0%
Rating Summary:
2 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush is reiterating it Outperform rating and $54 price target on shares of PetSmart (NASDAQ: PETM) following 12 percent dividend increase and the authorization of a $450 million buyback plan.
This June marks the third consecutive year which company has announced a new repurchase program and raised its dividend. The repurchase plan will commence on August 1 and will replace any unused portion of the company’s $400 million June 2010 authorization.
The company is on track to reach its long-term earnings growth of 13-18 percent even with a challenging macro environment. PETM is currently forecasting 2-4 percent comps which will be driven by traffic and ticket, as well as an increase in advertising. PetSmart's is maintaining its plan to open 40-50 new stores annually with a majority of them being smaller 10,000-15,000 square foot boxes to cut on on potential cannibalization.
The firm believes that the company is the best-positioned specialty pet retailer with a strong management team and track record of strong execution. An analyst at the firm notes, "we see a number of factors to drive PETM’s business; compelling new products, reset of hard goods and consumables areas, and improving sales of seasonal, hard goods, and services."
For more ratings news on PetSmart click here and for the rating history of PetSmart click here.
Shares of PetSmart closed at $43.39 yesterday.
This June marks the third consecutive year which company has announced a new repurchase program and raised its dividend. The repurchase plan will commence on August 1 and will replace any unused portion of the company’s $400 million June 2010 authorization.
The company is on track to reach its long-term earnings growth of 13-18 percent even with a challenging macro environment. PETM is currently forecasting 2-4 percent comps which will be driven by traffic and ticket, as well as an increase in advertising. PetSmart's is maintaining its plan to open 40-50 new stores annually with a majority of them being smaller 10,000-15,000 square foot boxes to cut on on potential cannibalization.
The firm believes that the company is the best-positioned specialty pet retailer with a strong management team and track record of strong execution. An analyst at the firm notes, "we see a number of factors to drive PETM’s business; compelling new products, reset of hard goods and consumables areas, and improving sales of seasonal, hard goods, and services."
For more ratings news on PetSmart click here and for the rating history of PetSmart click here.
Shares of PetSmart closed at $43.39 yesterday.
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