Petco price target raised to $3.50 from $3 at RBC Capital

RBC Capital raised the firm’s price target on Petco to $3.50 from $3 and keeps an Outperform rating on the shares after its Q2 results and guidance. The pet category is far from healthy, but trends seem to have bottomed and the company is making notable progress on the cost front, the analyst tells investors in a research note. RBC adds that it remains “cautiously optimistic” that new leadership will be a catalyst to accelerate cost actions and fine-tune growth initiatives, the firm added.