Petco price target lowered to $11 from $14 at Baird

Baird analyst Peter Benedict lowered the firm’s price target on Petco to $11 from $14 and keeps an Outperform rating on the shares. The analyst said resilient consumables/services growth, continued expense discipline, and improved inventory/cash flow dynamics were key positives; however, sustained weakness in discretionary categories resulting in more material GM pressure and disappointing FY23 guidance weighed more heavily for investors.