Piper Jaffray Overweight On PetSmart

Piper Jaffray is out with a research report on PetSmart, Inc. PETM after it reported earnings, and it has an Overweight rating and a $53 price target on shares. In a note to clients, Piper Jaffray writes, "We are reiterating our Overweight rating and maintaining our PT of $53 following a strong beat and raise quarter. PETM Q2 EPS of $0.54 beat our Street high EPS estimate of $0.53 and consensus of $0.51. Full year guidance was taken up by more than the beat as a result of slightly better than expected trends around sales and gross margin. Importantly, sales trends have remained stable despite the volatile macroeconomic backdrop in recent weeks. We continue to like PETM shares for 2011 and 2012 given the healthy trade-up theme to premium pet food and new product introductions, which translates to healthy sales and EPS growth." Shares of PETM lost 3 cents yesterday to close at $41.56.