Wells Fargo Downgrades PetSmart (PETM) to Market Perform; Well-Groomed, But Not Sprinting Ahead

Wells Fargo downgraded PetSmart (NASDAQ: PETM) from Outperform to Market Perform with a price target range of $47-$50 from $50-53.

Wells analyst says, "We are downgrading PetSmart as we see fewer near-term catalysts, a less favorable competitive environment, and the potential long-term risk of underinvestment in innovation. PetSmart has pulled off an outstanding turnaround thanks to a more measured pace of store growth and a renewed focus on returns, and shareholders have been rewarded with a 2-year return of 94% versus the S&P 500 Index up 11%. We see the risk/reward as more balanced going forward, and are taking a more neutral stance."

For more ratings news on PetSmart click here and for the rating history of PetSmart click here.

Shares of PetSmart closed at $47.59 yesterday.

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