Deutsche Bank Maintains Hold on PetSmart

Deutsche Bank is out with its report today on PetSmart PETM, maintaining Hold. In a note to clients, Deutsche Bank writes, "We recently conducted online price checks between PetSmart, Petco, and wag.com. The overall take-away is while PETM out-performed on initial pricing, both Petco and wag.com had more favorable shipping, thereby tipping the entire basket in favor of those two over PETM. Wag.com is owned by Quidsi (also owns diapers.com, soap.com and beautybar.com). Wag.com went live on July 6th. We maintain our Hold rating based mainly on valuation, but note that this new entrant into the market could pressure margins as well." Deutsche Bank maintains a $46 PT on PETM. At the time of posting, shares of PETM were trading at $45.12, up 0.27% from Wednesday's close.