Nomura Securities Reiterates a 'Buy' on PetSmart (PETM); One of the Cheapest & Best Stories We Cover
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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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Nomura Securities reiterates a 'Buy' on PetSmart (NASDAQ: PETM) price target of $62.00.
Analyst, Aram Rubinson, said, "PETM will report Q4 results on March 1st after the close. Despite being ahead of consensus at $0.95 (Street is $0.90), we think there is potential upside to our model. Good category growth together with innovation and a modest lift from inflation should allow for comps of ~5% (we are +5.3%). Regardless of whether or not PETM delivers Q4 upside, the shares are attractively poised for 2012, in our view. In addition to strong trends, we should begin to see an EPS catalyst from lower D&A beginning in 2012. Surprisingly, PETM is now one of the cheapest retailers we cover at 7.1x 2013 EBITDA. The market has begun to ‘dream big’ on cyclical stories, but it has left core performers like PETM behind.
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 $53.01 yesterday.
Analyst, Aram Rubinson, said, "PETM will report Q4 results on March 1st after the close. Despite being ahead of consensus at $0.95 (Street is $0.90), we think there is potential upside to our model. Good category growth together with innovation and a modest lift from inflation should allow for comps of ~5% (we are +5.3%). Regardless of whether or not PETM delivers Q4 upside, the shares are attractively poised for 2012, in our view. In addition to strong trends, we should begin to see an EPS catalyst from lower D&A beginning in 2012. Surprisingly, PETM is now one of the cheapest retailers we cover at 7.1x 2013 EBITDA. The market has begun to ‘dream big’ on cyclical stories, but it has left core performers like PETM behind.
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 $53.01 yesterday.
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