Petco upgraded to Buy from Hold at Jefferies

Jefferies upgraded Petco (WOOF) to Buy from Hold with a price target of $5, up from $4.05. The company enters 2026 “headed towards growth with liquidity and profitability concerns now in the rear view mirror,” the analyst tells investors in a research note. The firm believes Petco’s initiatives do not rely on an improving macro environment and play to the retailer’s strengths, which indicate they can work. Jefferies believes the stock at current levels underappreciates the progress Petco has made thus far and its “self-help improvements to come.”