Petco price target lowered to $2.70 from $3.50 at RBC Capital

RBC Capital lowered the firm’s price target on Petco to $2.70 from $3.50 and keeps an Outperform rating on the shares after its inline Q4 results and below-consensus Q1 guide. The fundamental backdrop remains largely unchanged for the company, which means there isn’t a lot of urgency to own shares, the analyst tells investors in a research note. RBC adds however that the setup on Petco is getting interesting with low expectations, a new CEO, and the potential for a sizable mix shift margin tailwind if the macro is bottoming.