Pets at Home will be posting full-year results tomorrow and investors would have been buoyed by the pet supplies retailer’s third-quarter update.
Shore Capital said the company is “expected to report a continuation of the trends seen in the third and fourth quarter, driven by strong revenue growth in the vets business and new customer acquisitions.”
The group felt confident enough to raise underlying profit before tax guidance towards the upper end of the consensus range of £126mln to £136mln, and head of guidance of £131mln.
Trading in the first four weeks of the final quarter was “robust” the group said.
However, the broker believes cost headwinds from foreign exchange and national living wages increase mean full-year 2024 profit will remain flat, with inflation remaining strong in the first half.
The broker was a buy recommendation on the stock, with a target price of 379p.