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Investing.com - Jefferies raised its price target on Petco Heath & Wellness Co. Inc. (NASDAQ:WOOF) to $4.15 from $4.05 while maintaining a Hold rating on the stock.
The price target adjustment follows Petco’s second-quarter financial results, which demonstrated "solid profit delivery" despite the absence of top-line growth or macroeconomic improvement, according to the research firm. InvestingPro data shows revenue declined 2.83% over the last twelve months, with the company maintaining a 38.4% gross margin.
Jefferies characterized the company’s first-half performance as showing "encouraging" early proof points in its stabilization efforts, noting that continued similar performance in upcoming quarters could put the business "on better footing."
The firm indicated that improved business stability would ease Petco’s transition to a more offensive growth strategy, though it emphasized that "there is still stabilization work to do."
Jefferies continues to monitor Petco’s business trends closely while maintaining its Hold recommendation on the pet retailer’s stock.
In other recent news, Petco Health & Wellness Company Inc. reported its second-quarter earnings for fiscal year 2025, exceeding Wall Street’s expectations. The company posted an earnings per share (EPS) of $0.05, which was significantly higher than the projected $0.01. Petco’s revenue for the quarter reached $1.5 billion, slightly surpassing analyst projections. In light of these results, UBS raised its price target for Petco to $3.70 from $3.25, while maintaining a Neutral rating. UBS highlighted the company’s progress in its turnaround efforts, which has bolstered market confidence. Despite these positive developments, Petco has yet to achieve a return to growth. These recent updates reflect the company’s ongoing efforts to improve its financial performance and market position.
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