No products in the cart.

Petco Heath & Wellness Shares Drop on BofA Securities’ Double Downgrade

Petco Health and Wellness (NASDAQ:WOOF) shares fell more than 9% pre-market today after BofA Securities analysts downgraded the company from Buy to Underperform and reduced the price target from $5.00 to $1.50.
The analysts expressed concerns over Petco’s diminishing market competitiveness, noting a significant drop in market share from 7% in 2015 to 4% currently. This decline is attributed to customers shifting to online platforms like Amazon and Chewy, as well as broadline retailers like Walmart, which offer more convenience or better value.
The analysts anticipate Petco’s financial performance to worsen in the first half of the year, continuing a trend of eleven consecutive quarters of declining profitability. Additionally, Petco’s deceleration in opening new veterinary hospitals, a key strategy for boosting sales and standing out against competitors, is viewed as a negative indicator.

Subscribe to get Latest News

Latest Articles

More like this