Wedbush Lowers PetMed Target To $13

According to Wedbush, PetMed Express' PETS target is lowered to $13. Wedbush reported that recent channel checks indicate an ongoing high level of competition (particularly pricing on non-prescription flea and tick products), which may present continued challenges for PETS. “Maintaining our UNDERPERFORM, but lowering our 12-month price target to $13 from $14, reflecting a multiple of 9x our FY12 EPS estimate of $1.00 plus $4/share cash. We believe our multiple (in line with its growth rate) is reasonable due to increased competition and lower growth offset by its solid balance sheet.” PetMed Express closed yesterday at $14.94.