- Needham analyst Anna Andreeva gave Petco Health And Wellness Co Inc (NASDAQ:WOOF) a Buy rating with a price target of $30.00 (45% upside).
- Andreeva notes Petco is becoming an omni-channel powerhouse after revamping its digital capabilities under CEO Ron Coughlin.
- The analyst thinks that the company’s bundled offerings model has a significant advantage over digital-only players.
- Petco has a much bigger presence than more mass-focused peers in the premium spectrum of consumables, the fastest growing sub-sector of food.
- The analyst further notes the company’s cost advantage in fresh/frozen fulfillment and expanded offering should position it to capture the incremental $3 billion in expected category growth over the next few years.
- Price Action: WOOF shares are trading higher by 3.03% at $20.76 on the last check Friday.
