Petco price target lowered to $7 from $10 at RBC Capital

RBC Capital lowered the firm’s price target on Petco to $7 from $10 but keeps an Outperform rating on the shares after its Q2 results. The firm believes that the company is close to an inflection on two headwinds that have been weighing on shares – discretionary softness and variable rate debt exposure – but also believes that it is prudent to keep its estimates conservative, the analyst tells investors in a research note.