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Central Garden & Pet: Strong Q1 Performance and Strategic Moves Drive Buy Rating

Central Garden & Pet: Strong Q1 Performance and Strategic Moves Drive Buy Rating

Analyst Brian McNamara of Canaccord Genuity maintained a Buy rating on Central Garden Pet (CENTResearch Report), retaining the price target of $45.00.

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Brian McNamara has given his Buy rating due to a combination of factors including Central Garden & Pet’s strong first-quarter performance, which exceeded market expectations in both sales and profitability. The company’s results were positively impacted by favorable shipment timing and promotional activities, which are expected to make the second quarter comparatively weaker. However, with the company maintaining its full-year guidance, the first half of the year shows promise relative to the previous year.
Additionally, the potential benefits from tariff impacts, due to the company’s minimal international sourcing and reduced competition from Chinese manufacturers, add to the positive outlook. Central Garden & Pet’s aggressive share repurchase activity, with $54 million worth of stock repurchased in the first quarter alone, further underscores confidence in the stock’s value. The remaining authorization for share buybacks, along with favorable weather conditions impacting key sales periods, supports the Buy rating and the target price of $45.

CENT’s price has also changed slightly for the past six months – from $37.550 to $37.070, which is a -1.28% drop .

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