Canaccord Genuity analyst Brian McNamara maintained a Buy rating on Central Garden Pet (CENT – Research Report) yesterday and set a price target of $52.00.
Brian McNamara has given his Buy rating due to a combination of factors related to Central Garden & Pet’s (CENT) recent performance and future potential. McNamara acknowledges CENT’s robust second-quarter results, which surpassed consensus sales estimates and showed considerable gains in profitability, with adjusted EBITDA and EPS outperforming expectations significantly. The reiteration of guidance and the anticipation of a critical period ahead for the Garden segment, which is expected to influence the company’s annual results, further substantiate the positive outlook. The company’s effective management of margins amidst inflation and its strategic market share gains, both organically and through mergers and acquisitions, are pivotal to McNamara’s optimism.
Moreover, CENT’s Garden segment exhibited organic growth in key categories, overcoming the declines in others, and the company’s brands outperformed private labels. The improvement in retailer inventory levels and the potential for increased off-shelf display activities are seen as positive indicators for the Garden segment’s upcoming critical sales period. In the Pet segment, despite a decline in durables, CENT continued to gain market share in several categories. The company’s financial strength and readiness for transformative acquisitions, with a prudent approach to leverage, provide additional confidence in its growth trajectory. McNamara’s rating reflects a comprehensive analysis of CENT’s operational performance and strategic initiatives that place the company in a favorable position for future success.
According to TipRanks, McNamara is a 2-star analyst with an average return of 0.4% and a 49.03% success rate. McNamara covers the Consumer Cyclical sector, focusing on stocks such as Holley, Driven Brands Holdings, and Traeger.
In another report released yesterday, Truist Financial also maintained a Buy rating on the stock with a $45.00 price target.
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Central Garden Pet (CENT) Company Description:
Central Garden & Pet Co. engages in the innovation, production, and distribution of branded private label products for the lawn and garden and pet supplies markets. It operates through Pet and Garden segments. The Pet segment consists of Four Paws Products, TFH Publications, Kaytee, Aquatics, Interpet, Pets International, Breeder’s Choice, and Life Sciences. The Garden segment consists of Pennington Seed, Matthews Four Seasons, Grant’s, AMBRANDS, Lilly Miller, the Pottery Group, Gulfstream, and GKI/Bethlehem Lighting. The company was founded by William E. Brown in 1980 and is headquartered in Walnut Creek, CA.
