S&P Capital IQ Reiterates its BUY Rating on PetSmart, Target Price Raised

October 14 00:00 2011

NEW YORK, October 14 (RainbowNewsLine.com) – Analyst Michael Souers of S&P Capital IQ has reiterated his BUY rating on the shares of PetSmart (NASDAQ: PETM). The 12-month target price has been raised from $50 to $52.

Analyst Michael Souers, in a research note published yesterday mentions that the company has raised its 2012 EPS guidance due to solid comp-store sales growth. The estimates of 6% & 5% comp-store sales growth for Oct-Q and FY12 ratify that pet supply retailers are immune to economic slowdowns. The EPS estimates for FY12 & FY13 have been raised from $2.46 to $2.51 and from $2.80 to $2.86,respectively, as PETM’s service offerings are different from its peers and customer loyalty is increasing.