LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg lowered their target price on retailer Pets At Home from 290.0p to 245.0p on Tuesday, stating that it was awaiting positive catalysts.
Berenberg said Pets at Home's FY25 pre-close update on 31 March reaffirmed the "tough outlook" for its retail division. It also noted that while FY25 underlying pre-tax profit guidance of £133.0m, was reiterated, management now expects FY26 PBT to be below consensus at £115.0m-125.0m, principally due to ongoing subdued demand and cost pressures.

The German bank reduced its FY26 group pre-tax profit forecasts by roughly 15% to £121.0m, with the guidance mid-point representing an approximately 10% decline year-on-year, which it also reckons will flow through to FY27.

"The shares are not expensive, and strong cash generation, a healthy dividend yield and potential ongoing share buybacks may provide support. However, bid speculation aside, near-term catalysts appear to be in short supply," said Berenberg, which reiterated its 'hold' rating on the stock.









Reporting by Iain Gilbert at Sharecast.com

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