Petco price target raised to $3 from $2.75 at Wells Fargo

Wells Fargo raised the firm’s price target on Petco to $3 from $2.75 and keeps an Equal Weight rating on the shares. The firm leans positive post-Petco’s Q2. Profits/free cash flow are a clear priority, Q2 comps beat and Q3 is expected to be better quarter-over-quarter with a profit inflection on deck. While a step in the right direction, strategic details are still thin and a heavy lift remains, Wells adds.