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Pets at Home raises profit expectations after strong summer

Full-year underlying pre-tax profit is estimated to be ahead of the current market expectation for £73mln

Pets at Home Group PLC - Pets at Home raises profit expectations after strong summer

 Pets at Home Group PLC (LON:PETS) said its full-year underlying pre-tax profit is estimated to be ahead of the current market expectation for £73mln.

The pet care business, which could only sell a limited amount of products during the coronavirus (COVID-19) pandemic lockdown, said the momentum seen after all its operations restarted in the summer has continued through the past month.

READ: Pets at Home preferred by Liberum among animal health stocks

In the eight weeks to September 10, 2020, the company said it delivered “double-digit like-for-like growth in customer sales”.

Upgrades galore

Shore Capital moved the stock to 'buy' from 'hold' arguing with the earnings momentum and  the self help levers available to the company that the shares have further to rise.

Analysts at Peel Hunt raised the target price to 350p from 300p and upgraded full-year profit expectations to £85mln from £77mln.

"Our assumptions suggest a very material slowdown from here, but deep down we know that it is unlikely, so forecast momentum definitely remains here: a special dividend is a possibility in time," they noted.

Shares shot up 15% to 351p on Thursday morning.

--Adds analyst comment, shares--

--Adds Shore Capital upgrade--

Quick facts: Pets at Home Group PLC

Price: 392.4 GBX

LSE:PETS
Market: LSE
Market Cap: £1.96 billion
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