Piper Jaffray Reiterates Underperform on PetMed Express

Piper Jaffray is out with its report today on PetMed Express PETS, reiterating Underperform. In a note to clients, Piper Jaffray writes, "We reiterate our Underperform rating on PETS as Wag.com, a new online retailer of pet supplies, launched yesterday. Wag.com is owned by Quidsi, which was acquired by Amazon.com in November 2010. Quidsi is best known for its other sites including Diapers.com and Soap.com. While it will take some time before Wag.com's brand and presence is known, we believe any incremental competition for PETS makes the fundamental backdrop even more challenging as we continue to expect margin deterioration driven by heightened competition from brick & mortar retailers, pricing pressure, and increased advertising spend." Shares of PETS closed Wednesday at $11.59, down 2.03% from Tuesday's close.