UPDATE: Argus Downgrades Central Garden & Pet Co. (CENT) to Hold

Argus analyst John Staszak downgraded Central Garden & Pet Co. (NASDAQ: CENT) from Buy to Hold.

The analyst comments "We are lowering our rating on Central Garden & Pet Co. (NGS: CENT) to HOLD from BUY. Central Garden is a leading producer and marketer of pet, lawn and garden products. The company has benefited from increased pet ownership and reduced mobility during the pandemic, as consumers spend more time at home. It has also been gaining market share through acquisitions, with four recent purchases, and has signaled that additional acquisitions are part of its long-term strategy. However, the company is being hurt by supply-chain disruptions and labor shortages, and facing delays in the implementation of new e-commerce and automation initiatives. Management also sees a growing impact from cost inflation in the coming quarters that it does not expect to be able to offset with higher prices. Based on these challenges, we believe that a HOLD rating is now appropriate. We would consider returning CENT to our BUY list on signs of moderating cost inflation and supply-chain improvement."

For an analyst ratings summary and ratings history on Central Garden & Pet Co. click here. For more ratings news on Central Garden & Pet Co. click here.

Shares of Central Garden & Pet Co. closed at $49.55 yesterday.

You May Also Be Interested In

• Nomura/Instinet Downgrades RHB Bank (RHBBANK:MK) to Neutral
• Marvell (MRVL) PT Raised to $325 at Oppenheimer
• Goldman Sachs Starts GenFleet Therapeutics Shanghai (2595:HK) at Buy