Petco price target lowered to $4 from $6 at RBC Capital

RBC Capital lowered the firm’s price target on Petco (WOOF) to $4 from $6 and keeps an Outperform rating on the shares after its Q4 earnings miss. The company’s new management has committed to sacrificing share near-term to build a more profitable business model, the analyst tells investors in a research note. The firm adds however that while the plan sounds good on paper, given that margin progress is expected to be driven by many small efforts as opposed to a few bigger and more tangible step, investors will take a wait and see approach on the stock.