Petco price target lowered to $12 from $17 at Wedbush

Wedbush analyst Seth Basham lowered the firm’s price target on Petco to $12 from $17 and keeps an Outperform rating on the shares. While the firm is positive on Petco’s long-term outlook, it does not see a positive catalyst with 4Q22 earnings on March 22, the analyst tells investors in a research note. Wedbush sees more downside than upside risk to sales and margins in Q4 due to continued hardgoods pressure and normalizing industry promotions and would not be surprised by FY23 guidance that is modestly below consensus.