BofA raised the firm’s price target on Petco (WOOF) to $2.50 from $2.10 and keeps an Underperform rating on the shares after the company reported fiscal Q1 adjusted EBITDA ahead of consensus. The firm raised its FY26 adjusted EBITDA view to $386M from $381M to reflect Q1 upside and raised its FY26 adjusted EPS view by 2c to 11c, noted the analyst. While Petco continues to make progress on cost transformation efforts before it “shifts back to growth/offense,” the firm sees continued same-store sales softness in the near-term as well as longer-term risk that market share erosion could continue, the analyst tells investors.
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