NEW YORK (TheStreet) -- Shares of PetSmart (PETM) are up 0.87% to $69.65 in pre-market trade after it was reported that the pet products and services company is interviewing investment banks, as it faces pressure from an activist investor, sources told the Wall Street Journal.
Earlier this month, Jana Partners LLC disclosed it had taken about a 10% stake in the company and said it would seek conversations with PetSmart about strategic options.
Then, Longview Asset Management LLC, which owns a 9% stake, sent the company's board a letter urging it to hire bankers to consider a deal or other options.
Must Read: Warren Buffett's 25 Favorite Growth Stocks
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 several positive factors, 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, increase in net income 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."