LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg lowered their target price on 'hold' rated Pets At Home from 245p to 220p on Tuesday, stating the group's rebuild "will take time".

Berenberg said its new, lower forecasts for Pets at Home now factor in the group's latest profit warning, announced on 18 September, resetting its FY26 group adjusted pre-tax profit expectation at £90m, the bottom end of the latest £90m-100m guidance range.

The German bank highlighted that this means that, in total, it has cut its FY26 forecast by roughly 30% so far this year, driven by "a more subdued" pet care retail market than anticipated and cost headwinds. It also noted that this flows through to its outer-year forecasts.

"Any significant improvement in market conditions aside, we think sustained positive momentum in the share price from here will require regaining investors' confidence following three profit warnings, which hinges on a return to group earnings growth driven by a turnaround of the group's retail division," said Berenberg.

"Our new, lower DCF-based price target of 220p reflects our reduced forecasts. At this stage, we do not see material short-term catalysts, although the group's balance sheet strength continues to enable a strong dividend and 6.5% yield, providing share price support. We hold our dividend flat in FY 2026E, growing thereafter, but we remove any future share buybacks from our forecasts until they have been announced."





Reporting by Iain Gilbert at Sharecast.com

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