Petco price target lowered to $2.50 from $3 at Baird

Baird lowered the firm’s price target on Petco to $2.50 from $3 and keeps a Neutral rating on the shares. The company’s Q4 results cleared a “low bar” and its “operational reset” is delivering some early results that include “positive momentum” from new brands, though the management has withheld FY24 guidance amid the current CEO transition, while the profit outlook for Q1 notably lagged expectations, the analyst tells investors in a research note. Baird adds however that Petco interim CEO Mike Mohan is taking action to address operational shortfalls across the organization with an eye towards stabilizing profits and reigniting top-line growth.