Needham & Company Downgrades PetSmart (PETM) to Hold; Valuation Call After Recent Run
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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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Needham & Company downgraded PetSmart (NASDAQ: PETM) from Buy to Hold.
Analyst, Sean McGowan, said, "PETM shares have risen over 50% since the last quarter of 2011, and PETM is up over 33% so far this year (vs S&P 500 up just under 8% ytd), and over 19% since the end of 1Q. The shares now reflect a P/E of over 20.4x our 2012 EPS estimate, and an EV/EBITDA multiple of over 8.3x our 2012 estimate. We typically base our target prices on anticipated multiples of forward 12 month results we expect stocks to reflect a year from now."
"We now believe the stock’s strong rise has put it close enough to this target valuation to make future gains less likely to outstrip broader markets. Therefore, we are lowering our rating, although we are not making any revisions to our earnings forecast."
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 $68.27 yesterday.
Analyst, Sean McGowan, said, "PETM shares have risen over 50% since the last quarter of 2011, and PETM is up over 33% so far this year (vs S&P 500 up just under 8% ytd), and over 19% since the end of 1Q. The shares now reflect a P/E of over 20.4x our 2012 EPS estimate, and an EV/EBITDA multiple of over 8.3x our 2012 estimate. We typically base our target prices on anticipated multiples of forward 12 month results we expect stocks to reflect a year from now."
"We now believe the stock’s strong rise has put it close enough to this target valuation to make future gains less likely to outstrip broader markets. Therefore, we are lowering our rating, although we are not making any revisions to our earnings forecast."
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 $68.27 yesterday.
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