Central Garden & Pet’s Financial Health at Risk Amid Potential Tax Legislation Changes

Central Garden & Pet (CENT) has disclosed a new risk, in the Taxation & Government Incentives category.

Central Garden & Pet faces substantial financial risk due to potential changes in tax legislation and unforeseen alterations in tax provisions, which could significantly impact its profitability and cash flow. The company’s effective tax rate may be adversely affected by shifts in its operational structure, business mix, and earnings, as well as by legislative changes at federal, state, and local levels. Ongoing tax audits across various jurisdictions further compound this risk, as disagreements over intercompany transactions and transfer pricing could lead to additional tax liabilities. Consequently, the resolution of these audits and any legislative changes may materially influence Central Garden & Pet’s future net income and cash flows.

The average CENT stock price target is $38.50, implying -4.13% downside potential.

To learn more about Central Garden & Pet’s risk factors, click here.