NEW YORK (TheStreet) --PetSmart Inc. (PETM) shareholder Longview Asset Management LLC agrees with hedge fund Jana Partners LLC that the pet supplies retailer should consider a sale, as it will gain a higher value from private holders than public market investors, Bloomberg reports.
Selling would stop a "protracted activist battle" that would cause a distraction to investors and decrease the company's value, Longview said.
The firm's clients own almost 9% of PetSmart shares and Longview said it would consider adding some, if not all of that stock to a deal, Bloomberg noted.
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Shares of PetSmart are up 0.20% to $69.09 in after-hours trading on Monday.
Separately, TheStreet Ratings team rates PETSMART INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate PETSMART INC (PETM) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, notable return on equity, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."