Jefferies Reiterates Hold Rating on Petco Health and Wellness Company, Keeps PT at $4.15

Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) is one of the 12 Best NASDAQ Penny Stocks to Buy According to Hedge Funds. On September 8, Jefferies reiterated a Hold rating on Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) stock, keeping the price target at $4.15.

Jefferies analyst Kaumil Gajrawala retains the rating following Q2 FY2025 results. Petco Health and Wellness Company posted $1.5 billion in revenue, just in line with the estimates and up by 2.3% year-over-year. Gajrawala asked management regarding the e-commerce and inventory retooling. Petco’s CEO, Joel Anderson, in response to Gajrawala, said that e-commerce is now more profitable and early in its transformation. On the other hand, the inventory control continues to improve, balanced against customer needs.

These improvements have led to increased profitability, with operating income increasing significantly by $40.6 million to reach $43 million from a year ago. The adjusted EBITDA soared by $30.3 million to $113.9 million, indicating robust operational performance and strategic execution.

As of September 12, Petco Health and Wellness Company, Inc.’s (NASDAQ:WOOF) average price target of $4, based on analysts’ estimates, implies an upside of nearly 15.61% from current levels.

Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) is a health and wellness company that focuses on enhancing the lives of pets, pet parents, and its Petco partners in the U.S., Mexico, and Puerto Rico.

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Disclosure: None. This article is originally published at Insider Monkey.