Petco price target raised to $6 from $3 at Morgan Stanley

Morgan Stanley analyst Simeon Gutman raised the firm’s price target on Petco (WOOF) to $6 from $3 and keeps an Equal Weight rating on the shares. The firm is “encouraged” by Petco’s strategic initiatives to improve the business taking shape and sees “signs of stabilization,” but argues that the risk/reward is “wide” with about 75% upside and 60% downside to its respective $9 and $2 per share bull and bear cases.