Goldman Sachs maintained PetSmart (NASDAQ: PETM) with a Neutral rating and raised the price target from $72.00 to $74.00.
Goldman Sachs commented, “Core growth drivers – notably strong increases in sales of superpremium foods – remain intact, though they are cycling years of big gains, and are unlikely to accelerate. The firm specifically indicated that dog is moderating from torrid growth, while cat actually gained momentum. … PETM asserts, and our checks concur, that the online market is not big enough to dent PETM’s sales yet. … We think PETM’s current forward growth rate supports the 16.5X forward multiple embedded in our price target.”
PetSmart closed at $66.55 on Wednesday.
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Tags: Goldman Sachs
Posted in: Analyst Color, Price Target, Analyst Ratings