RBC Capital analyst Steven Shemesh maintains $Petco Health and Wellness (WOOF.US)$ with a buy rating, and adjusts the target price from $5 to $6.
According to TipRanks data, the analyst has a success rate of 56.1% and a total average return of 2.9% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Petco Health and Wellness (WOOF.US)$'s main analysts recently are as follows:
Petco's strategic initiatives aimed at enhancing the business are showing promising signs of taking effect, leading to some stabilization. However, the risk/reward scenario presents considerable variance, with substantial upside as well as downside potential in different market conditions.
Petco's third-quarter performance surpassed expectations concerning comparable sales and EBITDA, though its fourth-quarter guidance was somewhat under expectations. The outlook for Q4 is deemed conservative in light of the changing market conditions; however, there is potential for upside as Petco's profit-oriented strategy appears to be fostering margin growth through supply chain savings and enhanced operational efficiencies.
Petco's Q3 update appears positive; however, there remains a hesitation to pursue aggressively due to Q4 guidance being below average market expectations, coupled with limited visibility and considerable outstanding tasks.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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