Analysts at Jefferies have clipped their price target for Pets at Home Group PLC (LSE:PETS), from 330p to 250p, after last week’s profit warning.
The American broker, nevertheless, is sticking with a 'Buy', for now at least, saying the share's value is supported by the group's Veterinary division.
Jefferies noted that group 2026 profit before tax expectations have halved over the last three years, amidst weakness in the Retail operation.
“Most notable, in our view, has been PETS’ shift from a longstanding record of Retail market share gains into losses over the last year,” Jefferies wrote, adding that management now recognises challenges are not just external but linked to product range.
Plans are emerging to address gaps in Food, but Accessories remain problematic, the analysts noted.
Despite the downgrade, the broker reckons the Vet business continues to perform strongly and anchors valuation - with Jefferies outlining that its 250p target would still imply around 30% upside from the current price of 198p.
Jeffferies, meanwhile, still cautioned that there remains "a wide variance in scenarios" for the retail operation, including 'negative valuation outcomes', and, also highlighted the group's reliance on certain store locations.
In London, the Pets at Home share price rallied on Monday, recovering around 5.3p or 2.75% to 198.1p.