Pets at Home Group PLC (LSE:PETS) had its target price cut by nearly a quarter but is still a ‘buy’ with Deutsche Bank.
Analysts at the bank slashed their target price to 430p from 555p, with cost headwinds expected to hit in the next financial year.
Higher freight costs and utility bills as a result of the Ukraine war, are the main areas of concern for the broker.
Consequentially, profit before tax guidance has been cut to £150mln from £162mln for the 2023 financial year.
The broker also expects that pet care demand will normalise after a boost during the lockdown, adding further to the London -isted company's challenges in 2023.
This year, profit before tax estimates remain unchanged at around £143mln.