National Bank upgraded Pet Valu (PTVLF) to Outperform from Sector Perform with an unchanged C$41 price target. The stock has declined 16% since Chewy (CHWY) highlighted international expansion plans in its Q4 earnings call and the market is reflecting $80M in lost revenue for the company, which is overly punitive given Chewy’s U.S. market share is about “7% obtained in over 10 years”, the analyst tells investors in a research note. The firm is also upgrading the stock given the strong and resilient business fundamentals, high returns on capital, expectations of positive earnings growth in the second half of this year, and attractive valuation.
Published first on TheFly
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