J.P. Morgan Maintains Neutral on PetSmart (PETM)

J.P. Morgan is out with its report today on PetSmart PETM, maintaining Neutral. In a note to clients, J.P. Morgan writes, "We believe the company is making strong strides in becoming a better merchant and are impressed by the cash-generating capabilities of the model. The management team is focused on the right strategies and has become disciplined with its capital and more shareholder friendly. While we believe the hardgoods recovery will lag the economic recovery, the biggest impediment is price as we believe the stock is largely reflective of the company's strong execution. As such, we'd be more attracted on dips as we see this as a stable, well-run company that will consistently generate cash and return that to shareholders largely through buybacks." J.P. Morgan has a $43 PT on PETM. Shares of PETM closed Thursday at $41.04, up 1.13% from Wednesday's close.