Petco price target lowered to $15 from $20 at Needham

Needham analyst Anna Andreeva lowered the firm’s price target on Petco to $15 from $20 but keeps a Buy rating on the shares. The company is growing its vet hospital footprint at a 20% or more rate annually but trading at just 7-times on enterprise value to expected EBITDA basis, the analyst tells investors in a research note, noting that Petco shares get little credit for growth. Needham adds however that while it remains positive on the stock, its price target cut reflects a lower multiple due to still-choppy fundamentals.