Petco price target lowered to $8 from $11 at Baird

Baird analyst Peter Benedict lowered the firm’s price target on Petco to $8 from $11 and keeps an Outperform rating on the shares. The firm says that while the company’s Q2 results “were fine,” it has “clearly been on the wrong side recommending WOOF shares.” However, strength in Petco’s services and consumables business, its “aggressive” cost savings plan, and “relatively inexpensive” valuation on EBITDA warrant riding out the category mix pressures “for now,” the analyst tells investors in a research note.