Petiq Inc (NASDAQ: PETQ) received a Buy rating and a $37 price target from Jefferies analyst Kevin Grundy today. The company’s shares opened today at $33.81, close to its 52-week high of $35.80.
Grundy said:
“PETQ printed 15% sales upside in 2Q driven by strength in the co.’s distributed portfolio, which enabled PETQ to raise its FY18 sales outlook. Product mix drove margin downside, resulting in a reaffirmed EBITDA outlook. 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. FY18-20 EBITDA est. are little changed, PT to $37 (17.5x EV/EBITDA). Strong 2Q growth due to distributed products: PETQ delivered $171M in sales (JEF/ 25% organic sales growth (JEF 20%), and $16M in adj. EBITDA (-5% vs. Street). -200 bps of EBITDA margin shortfall was partially due to growth in lower-margin distributed products from wins in Rx and strength in flea and tick, as PETQ reported +52% products org sales.”
According to TipRanks.com, Grundy is a 4-star analyst with an average return of 6.7% and a 67.6% success rate. Grundy covers the Consumer Goods sector, focusing on stocks such as Coca-Cola European Partners, Edgewell Personal Care, and Monster Beverage Corp.
Currently, the analyst consensus on Petiq Inc is a Strong Buy with an average price target of $31.50, representing a -6.8% downside. In a report released today, Oppenheimer also maintained a Buy rating on the stock.
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The company has a one-year high of $35.80 and a one-year low of $17.03. Currently, Petiq Inc has an average volume of 387K.
Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PETQ in relation to earlier this year.
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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.
