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Petco Stock a "Good Place to Hide," Says Needham

Published 20/05/2022, 17:50
Updated 20/05/2022, 17:50
© Reuters.

By Sam Boughedda

Investing.com -- In a note to clients Friday, Needham analyst Anna Andreeva maintained a Buy rating and a $30 price target on Petco (NASDAQ:WOOF).

The analyst told investors ahead of the company's earnings release next week, May 24th, that Petco stock is a "good place to hide" due to the replenishment demand in the pet space.

The pet retailer's shares have been weighed down this week after Walmart (NYSE:WMT) and Target (NYSE:TGT) provided a conservative outlook on consumer spending.

Petco shares are down 11.5% Friday and 24% in 2022.

Elsewhere, Jefferies analyst Stephanie Wissink said the selloff in the pet specialty market is overdone as demand in the "recession-resistant" category remains healthy, and there are minimal risks to pet retailers from category rotation.

Wissink lowered her firm's price target on Petco to $19 from $21, maintaining a Hold rating.

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