$PET.TO

CIBC Confirms Neutral Rating on Pet Valu and Cuts It Price Target to $22.00 on Q1 Results

CIBC Capital Markets maintained its neutral rating on the shares of Pet Valu Holdings (PET.TO) and lowered its price target to C$22.00 from $28.00 after the company reported its first quarter-financial results on Tuesday.The bank said the core issue is "macro as opposed to execution, though PET's price/promo positioning remains a headwind." CIBC reduced its earnings forecasts in line with management's updated outlook and now forecasts 10% growth in 2027."Though we believe valuation reflects substantial pessimism, we do not see a visible catalyst to push shares higher in the near-term (outside of a privatization)," said analyst Mark Petrie. "While there are understandable explanations for the pressures, we believe it will take PET some time to re-build investor confidence in medium-term growth potential."The bank also reduced its target multiple on the company to 13x, taking its price target to C$22.00."We have never been of the view that PET was a particularly strong fit with a strategic acquirer (such as CTC or EMP), but given the share price and compressed valuation, it could be an attractive target for a financial sponsor that could cut costs and push it into a franchise," added Petrie.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $17.27, Change: $+0.27, Percent Change: +1.59%

Pet Valu Holdings Price Target Cut to $23.00 After Q1 Miss

Stifel Canada has cut its price target on the shares of Pet Valu Holdings (PET.TO) by $9.00 to $23.00 after the company reported a first-quarter earnings miss.Analyst Martin Landry, who is maintaining a buy rating on the shares, believes Pet Valu is negatively impacted by macroeconomic events rather than company specific issues. Consumer confidence has lagged in recent months, as inflationary pressure impacts discretionary spending. Still, the pet-food industry has resilient characteristics and Pet Valu seems to be gaining market share according to management, he writes. Pet Valu has an 18% market share, 300bps higher than the next competitor.If the Iran conflict gets resolved, consumer confidence could return and fuel costs could abate, Landry adds. He is lowering his 2026 earnings per share forecast to $1.57, down 2% Y/Y, and flat when removing the extra week in 2025.The revised price target reflects lower valuation multiples and lower forecast.Price: $17.02, Change: $+0.02, Percent Change: +0.12%

Pet Valu Price Target Lowered at TD, RBC, Desjardins

Analysts lowered their price targets on Pet Valu Holdings (PET.TO) after the Canadian pet food and pet supply retailer reported Q1 results on Tuesday.The stock declined $2.76, or 14%, to $17 on the Toronto Stock Exchange.Analyst Cheryl Zhang reduced TD Securities' price target on PET to $22 from $34, and maintained a Buy rating."Shares fell 14% yesterday on reduced earnings outlook driven by elevated value-seeking behaviour and fuel costs," Zhang said in a note to clients."We maintain Buy as the attractive long-term growth outlook is unchanged and valuation at 10.4x NTM EPS is compelling," the analyst said. "However, investor sentiment may take time to recover as earnings return to growth in H2/26."RBC Capital Markets analyst Irene Nattel lowered her target to $26 from $27, and maintained an Outperform rating."...Investors are clearly disappointed with downward revision to 2026 guidance, including management commentary around heightened level of consumer value-seeking behaviour," Nattel said in a note to clients."Having said that, in our view, pressure on shares/ valuation already reflects current state of consumer demand/SSS, and understates PET's solid fundamental positioning, capital-light model and high ROIC/FCF," the analyst said.Desjardins analyst Chris Li lowered his price target to $26 from $32, and maintained a Buy rating."...At a forward P/E of only ~10.5x, we believe PET's valuation already reflects the near-term challenges, with potential for improvement in 2H as promo intensity eases and PET laps year-ago pricing investments," Li said in a note to clients.

TSX Down 170 Points at Midday With Info Tech, Miners, The Worst Performers

The Toronto Stock Exchange is down 160 points at midday with most sectors lower.The worst performers are info tech (-2.5%) and miners (-1.2%).Energy, up 1.7%, is the best performer. Oil prices rose for a third session early on Tuesday as a faltering ceasefire between the United States and Iran keeps the Strait of Hormuz closed, continuing the largest-ever energy supply shock.Gold moved lower early Tuesday, dropping for a second day as the dollar and yields rose after the U.S. reported inflation continued to surge last month on higher energy prices that followed the war on Iran.In stocks, Pet Valu (PET.TO) has fallen 14% to $17.05 after it reported a first-quarter earnings miss.

Pet Valu Q1 Net Income Falls and Misses Analysts' Expectations

Pet Valu Holdings (PET.TO) reported a decrease in net income in the first quarter due to lower operating income and higher interest expenses, partially offset by lower foreign exchange loss and lower income tax expense, it said on Tuesday.For the three months ended April 4, 2026, the company reported adjusted net income of $21.6 million or adjusted earnings per diluted share of $0.31 compared with $25.4 million or earnings per diluted share of $0.36, a year earlier. The result missed a consensus estimate compiled by FactSet of $0.37 per share.Revenue increased to $287.9 million in the quarter, compared with $279.1 million, a year-ago, due to higher retail sales and franchise and other revenues, the pet food supplier said. The reported revenue was slightly above consensus estimate compiled by FactSet of $287.7 million."Our first quarter performance was shaped by heightened value-seeking behaviour, as devoted pet lovers leaned into our compelling programs to capture savings on quality specialty products," said Pet Valu Chief Executive Greg Ramier. "We delivered 3% revenue growth, supported by continued market share gains, making Pet Valu one of the fastest pockets of growth within Canadian pet retail.The company expects, on a 52-week comparable basis, revenue growth between 2% and 4%, adjusted EBITDA margin of about 21%, and adjusted net income per diluted share similar to Fiscal 2025.Its board also declared a dividend of $0.13 per common share, unchanged from the prior quarter, payable on June 15, to holders of common shares of record as at the close of business on May 29.Shares of the company closed down 2% to $19.76 on Monday on the Toronto Stock Exchange.

Earnings Flash (PET.TO) Pet Valu Says On a 52-week Comparable Basis, Expects Revenue Growth between 2% and 4%

Earnings Flash (PET.TO) Pet Valu Q1 Net income was $20.0M, Down 7.9% versus Q1 2025

Pet Valu Q1 Revenue was $287.9M, up 3.2% versus Q1 2025