Goldman Sachs Reports On Meetings With Management At PETM

Goldman Sachs is maintaining its Buy rating and its $50 price target on PetSmart Inc. PETM after constructive meetings with the company's management According to Goldman Sachs, the key themes of these meetings included (among others), “* Merchandising driving same-store sales consistency. New staff has aided development of private label – more “good/better/best” within proprietary brands, driving penetration >20%, closer to the 25% goal; new valuable partnerships (Martha Stewart – cat product pending, and GNC); the first growth in “specialty” (small animal products) in five years; and, solid SSS growth in hard goods, aiding margins. * Moves up-market to super-premium foods are driving loyalty (given limited distribution of these brands). Blue Buffalo has been a particularly potent addition to the mix.” PETM closed yesterday at $43.88.