Goldman Sachs Raises Estimates, Price Target On PetSmart (PETM)

In a company update released by Golman Sachs GS today, the firm's analysts said that they are raising estimates and their price target on PetSmart PETM after the company's earnings release yesterday. PETM reported earnings per share of $0.41, which exceeded Goldman and the Street's consensus estimates of $0.36. The analysts wrote that "PETM is delivering solid results, with improving execution driving accelerating sales and gross profit, and strong expense control. Hard goods resets have evolved from disruptive factors to sales drivers, as segment sales grew for the first time in many quarters; remerchandising of consumables to accommodate an upscale customer base is yielding trading up despite a challenging consumer backdrop; and, new flea/tick products are driving incremental gross profit dollars." Goldman is raising EPS estimates on PETM in light of the strong quarter. 2010 estimates go to $1.98 from $1.92 and 2011/2012 full year EPS goes to $2.27/$2.50 from $2.14/$2.30. GS also raised its price target to $35 from $33. The firm has a Neutral rating on the stock. During today's trading session, PETM has gained 8% to $32.57.