November 16, 2012 at 09:13 AM EST
Deutsche Bank Reaffirms “Hold” Rating for Petsmart; Raises Price Target (PETM)

Deutsche Bank has reiterated its “Hold” rating for pet supply retailer, PetSmart, Inc.(PETM), and has raised its price target Friday.

The firm has reaffirmed its rating of “Hold” for the company, and has increased its price target from $68 to $71. This price target suggests a 5% increase over the stock’s current price of $67.48.

An analyst noted, “PetSmart reported another strong quarter with upside across the board. Comps came in at 6.5% vs consensus of 5% driven by continued strength in higher-end consumables. This upside helped PETM leverage occupancy ahead of expectations, driving 100 bps of gross margin gains, and leverage on expenses. The company also benefitted from easier advertising expense compares. We maintain our Hold rating as we balance strong sales and gross margin trends with the company’s premium.”

PetSmart shares were mostly flat during premarket trading Friday. The stock is up 31.57% YTD.

The Bottom Line
Shares of PetSmart (PETM) have a .98% dividend yield, based on last night’s closing stock price of $67.48. The stock has technical support in the $62-$63 price area. The stock is trading near the all-time high price range of $70-$72 a share.

PetSmart, Inc.(PETM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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