Pets at Home: Strengthening Price Competitiveness and Market Position Supports Buy Rating

In a report released today, Andrew Wade from Jefferies maintained a Buy rating on Pets at Home, with a price target of p265.00.

Andrew Wade has given his Buy rating due to a combination of factors that highlight Pets at Home’s improving competitive position and attractive valuation. His proprietary price-tracking work indicates that the company has materially tightened its food pricing versus key online competitor Zooplus, suggesting that Pets at Home is becoming more price-competitive without sacrificing its brand strength. This sharpened price stance is important in an inflationary backdrop, where consumers are increasingly sensitive to value, and it supports expectations of resilient volume trends. Wade also views Pets at Home’s positioning within the broader retail landscape favorably, especially relative to other names he covers in his Price Tracker universe.

Moreover, the analysis implies that Pets at Home can leverage its enhanced price perception to defend and potentially grow market share while still maintaining a healthy margin structure. The company’s performance in the proprietary basket analysis signals that it is managing inflationary pressures effectively and is well placed versus peers from both a pricing and competitive standpoint. Combined with the structural growth drivers in the pet care market, these elements underpin Wade’s conviction that the current share price does not fully reflect the company’s earnings and cash flow potential. As a result, he concludes that the risk/reward profile is favorable and justifies a Buy recommendation on GB:PETS.

Wade covers the Consumer Cyclical sector, focusing on stocks such as Games Workshop, Pets at Home, and THG. According to TipRanks, Wade has an average return of 5.6% and a 54.46% success rate on recommended stocks.