Petco price target lowered to $3.50 from $4.50 at Wedbush

Wedbush lowered the firm’s price target on Petco to $3.50 from $4.50 and keeps an Outperform rating on the shares. The firm notes the company reported Q3 sales results that came in line with expectations, but EBITDA sharply missed estimates. While Wedbush was bracing for gross margin downside, the magnitude of the decline was larger than expected due to a step up in pricing, promotional, and product assortment actions undertaken to address shifting consumer demand preferences.