Central Garden & Pet upgraded to Buy at Argus on valuation and lower costs

As previously reported, Argus analyst John Eade upgraded Central Garden & Pet to Buy from Hold with a $50 price target. The company holds a valuable position in its industry, having benefited from increased pet ownership and reduced mobility during the first phase of the pandemic as consumers spent more time at home and in their yards and gardens, the analyst tells investors in a research note. Central Garden & Pet has also completed several automation initiatives that are helping it to lower labor costs and reduce its reliance on third-party manufacturers, while its shares are trading at below-industry average valuation multiples, the firm states, adding that the company’s long positive track record warrants a premium instead.