TSX:PET - Post Discussion
Post by
retiredcf on Jan 11, 2022 8:25am
New Coverage
Touting “appealing” industry characteristics, “strong” growth prospects and “solid” business economics and competitive positioning, Stifel analyst Martin Landry initiated coverage of Pet Valu Holdings Ltd. with a “buy” rating and $42 target. The average on the Street is $39.17.
“Pet Valu sells pet food and pet products across a network of 622 stores in Canada,” he said. “The company has an impressive track record with an EBITDA CAGR [compound annual growth rate] of 18 per cent over the last 12 years and according to our long-term scenarios, Pet Valu could double its EPS over the coming four years providing investors appealing growth prospects. The Canadian pet industry is appealing due to (1) rising spending on pets, (2) pricing power due to customer stickiness, and (3) recession-resistant characteristics. There is a scarcity of publicly traded Canadian companies with exposure to the pet industry making PET a stand out.”
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