NEW YORK (TheStreet) -- PetSmart (PETM) stock has had its price target cut to $65 from $70, Credit Suisse said Tuesday. The firm also lowered its 2014 and 2015 earnings estimates to $4.35 and $4.87 from $4.52 and $5.08, respectively.
Analysts wrote, "Despite significant resets in accessories and other efforts, the company's traffic growth continues to be negative."
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- PETM's revenue growth has slightly outpaced the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 1.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- PETSMART INC has improved earnings per share by 6.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PETSMART INC increased its bottom line by earning $4.03 versus $3.55 in the prior year. This year, the market expects an improvement in earnings ($4.35 versus $4.03).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Specialty Retail industry and the overall market, PETSMART INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The current debt-to-equity ratio, 0.48, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.46 is very weak and demonstrates a lack of ability to pay short-term obligations.
- You can view the full analysis from the report here: PETM Ratings Report