Nomura Securities maintains a 'Buy' on PetSmart (PETM); 4Q Review; Optimism for 2012 Outweighs Margin Miss
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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 maintains a 'Buy' on PetSmart (NASDAQ: PETM) price target of $62.00.
Analyst, Aram Rubinson, said, "PETM reported FQ4 results of $0.91, slightly ahead of the Street’s $0.90 and below our projection for $0.95. Comps were strong at +5.5% (we were +5.3%; Street was +4.5%), but gross margin disappointed at 30.4%. Despite a modest Q4 shortfall, our F2012 and F2013 estimates are unchanged at $3.25 and $3.75 respectively. Our $62 price target is also unchanged and is based on 7.5x or F2013 EBITDA estimate of $877 million and 8x the company’s share of Banfield EBIT. At 7.4x our 2013 EBITDA estimate, PETM is not only strong, but it has become increasingly attractive on a relative basis. Our price target embeds 7.5x EBITDA. Our universe (ex-Amazon (Nasdaq: AMZN)) trades at 7.9x."
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 $55.74 yesterday.
Analyst, Aram Rubinson, said, "PETM reported FQ4 results of $0.91, slightly ahead of the Street’s $0.90 and below our projection for $0.95. Comps were strong at +5.5% (we were +5.3%; Street was +4.5%), but gross margin disappointed at 30.4%. Despite a modest Q4 shortfall, our F2012 and F2013 estimates are unchanged at $3.25 and $3.75 respectively. Our $62 price target is also unchanged and is based on 7.5x or F2013 EBITDA estimate of $877 million and 8x the company’s share of Banfield EBIT. At 7.4x our 2013 EBITDA estimate, PETM is not only strong, but it has become increasingly attractive on a relative basis. Our price target embeds 7.5x EBITDA. Our universe (ex-Amazon (Nasdaq: AMZN)) trades at 7.9x."
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 $55.74 yesterday.
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