Petco Heath & Wellness Co. Inc. (WOOF) PT Raised to $3 at RBC Capital
RBC Capital analyst Streven Shemesh raised the price target on Petco Heath & Wellness Co. Inc. (NASDAQ: WOOF) to $3.00 (from $2.70) while maintaining a Outperform rating.
The analyst comments "1Q results exceeded guidance, which we view as a good first step towards rebuilding credibility. We expect investors to question whether this was a false start vs. Petco turning the corner, but with category trends seemingly bottoming, a new Executive Chairman, and a new CEO announcement pending, the setup screens interesting. We adjust our FY'24/FY'25 comp sales estimates to +0.7%/+3.2% (+0.3%/+3.6% prior) and adj. EBITDA estimates to $330M/$370M ($301M/$340M prior). Our PT comes up to $3.00 (from $2.70) based on ~6.5x our revised FY'25 adj. EBITDA estimate ($370M)."