Evercore ISI analyst Oliver Wintermantel lowered the firm’s price target on Petco to $10 from $12 and keeps an In Line rating on the shares. Petco’s 2023 guidance was materially below expectations and, while demand for pet supply products remains healthy, the negative mix shift to consumable and marginally higher interest payments are putting pressure on the company’s EPS, the analyst tells investors. The firm won’t hesitate to get more constructive on the stock if supplies begin to recover, as topline and interest guidance appears to be appropriately conservative.
Published first on TheFly
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