Petiq Inc (PETQ) received a Buy rating and a $42 price target from Jefferies analyst Kevin Grundy today. The company’s shares closed yesterday at $31.27.
Grundy noted:
“PETQ printed 5% sales upside in 3Q driven by strength in the co.’s distributed portfolio, which drove an upward revision to its FY18 sales outlook. EBITDA was modestly below consensus, but PETQ’s outlook was reaffirmed. PETQ provides investors with a unique opportunity to participate in the high growth pet space as pet medication/services continue to shift to a lower cost setting in US retail. FY19-20 EBITDA est. edge < 2% higher, PT to $42 (17.5x EV/EBITDA). Strong 3Q growth as distributed products drive upside, services relatively in- line: PETQ delivered $131.4M in sales (JEF/Street ~$125M) and $13.4M in adj. EBITDA (-2% vs. Street). EBITDA margins came in 75 bps below consensus, partially owing to growth in lower-margin distributed products from wins in Rx and strength in flea and tick."
According to TipRanks.com, Grundy is a 4-star analyst with an average return of 6.8% and a 59.7% success rate. Grundy covers the Consumer Goods sector, focusing on stocks such as Coca-Cola European Partners plc, Skyline Champion Corporation, and Constellation Brands Inc.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Petiq Inc with a $45.20 average price target, which is a 44.5% upside from current levels. In a report released today, Oppenheimer also maintained a Buy rating on the stock with a $50 price target.
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Based on Petiq Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $2.5 million. In comparison, last year the company had a GAAP net loss of $226K.
Based on the recent corporate insider activity of 34 insiders, corporate insider sentiment is negative on the stock.
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PetIQ, Inc. is a holding company, which engages in the manufacture, procurement, packaging, and distribution of pet health and wellness products. It operates through the Domestic and International segments. The Domestic segment involves the Unites States and Canada markets. The International segment deals with Europe.
