Petco Stock a “Good Place to Hide,” Says Needham
2022.05.20 20:00
By Sam Boughedda
Investing.com — In a note to clients Friday, Needham analyst Anna Andreeva maintained a Buy rating and a $30 price target on Petco (NASDAQ:WOOF).
The analyst told investors ahead of the company’s earnings release next week, May 24th, that Petco stock is a “good place to hide” due to the replenishment demand in the pet space.
The pet retailer’s shares have been weighed down this week after Walmart (NYSE:WMT) and Target (NYSE:TGT) provided a conservative outlook on consumer spending.
Petco shares are down 11.5% Friday and 24% in 2022.
Elsewhere, Jefferies analyst Stephanie Wissink said the selloff in the pet specialty market is overdone as demand in the “recession-resistant” category remains healthy, and there are minimal risks to pet retailers from category rotation.
Wissink lowered her firm’s price target on Petco to $19 from $21, maintaining a Hold rating.
