Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

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

Published 05/20/2022, 12:40 PM
Updated 05/20/2022, 12:43 PM
© Reuters.
WOOF
-

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.