Piper Jaffray Underweight On PetMed Express (PETS)

Piper Jaffray has an Underweight rating and a $12.50 price target on shares of PetMed Express

. In a note sent to clients, Piper Jaffray writes, "Online web traffic data from comScore suggests that site visits for the month of December at PETS was down 26% yoy, which follows similarly disappointing trends noted in October (down 30% yoy) and November (down 36% yoy). In aggregate, we believe that 4Q10 web traffic was down 31% relative to year-ago levels, which supports our cautious outlook ahead of the company's FQ3 results expected later this month. We believe that concerns related to increased competition and aggressive pricing discounts outweigh the company's positive capital position and strong cash flows. We reiterate our Underweight rating and $12.50 price target on PETS and believe that further downward revisions to consensus estimates are likely following the company's earnings release, particularly for FY12." Shares of PETS closed at $15.78 yesterday.