Central Garden & Pet stock price target raised to $50 by Canaccord on strong profitability

Published 07/08/2025, 12:42
Central Garden & Pet stock price target raised to $50 by Canaccord on strong profitability

Investing.com - Canaccord Genuity raised its price target on Central Garden & Pet Co. (NASDAQ:CENT) to $50.00 from $45.00 on Thursday, while maintaining a Buy rating following the company’s third-quarter results.

Central Garden & Pet reported mixed Q3 results after Wednesday’s market close, with sales approximately 3% below consensus. The Pet segment came in about 1% below expectations, while the Garden segment missed by roughly 3%.

Despite the revenue shortfall, the company’s profitability metrics exceeded Street expectations. Adjusted EBITDA outperformed by approximately 14%, and adjusted earnings per share beat consensus by about 9%. The company maintains a GOOD financial health score according to InvestingPro’s comprehensive analysis.

Central Garden & Pet raised its full-year guidance, now forecasting adjusted EPS of $2.60, up from its previous outlook of "$2.20 or better." The improved outlook reflects margin expansion driven by Cost and Simplicity (NASDAQ:SMPL) initiatives and a favorable product mix.

Canaccord noted that with merger and acquisition activity relatively dormant, share buybacks have become a higher capital allocation priority for the company, which the firm views as a positive signal for investors.

In other recent news, Central Garden & Pet Company reported its third-quarter 2025 earnings with a notable performance in earnings per share (EPS). The company achieved an EPS of $1.56, surpassing the forecasted $1.35, resulting in a 15.56% positive surprise. However, revenue for the quarter fell short of expectations, coming in at $961 million against the anticipated $991.9 million. Despite the earnings beat, the revenue miss is a key point of interest for investors. These developments highlight the company’s mixed financial performance. Analysts and investors are closely monitoring these results for implications on future performance. The earnings announcement is part of the recent developments surrounding Central Garden & Pet Company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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