Petco price target raised to $6 from $5.50 at Wedbush

Wedbush analyst Seth Basham raised the firm’s price target on Petco (WOOF) to $6 from $5.50 and keeps an Outperform rating on the shares. Petco’s Q3 results beat comp and EBITDA expectations, but its Q4 guidance was slightly below expectations, the analyst tells investors in a research note. Wedbush believes the Q4 outlook is appropriately conservative given the dynamic environment, but sees upside as Petco’s profit-first strategy is showing signs of building margin improvement through supply chain savings and operational efficiencies.