Key Highlights
- The firm noted that Petco exceeded Q3 2025 expectations and is positioned to grow its top line in 2026.
- Goldman Sachs’ strategy centers on its services business, which acts as a unique differentiator.
- Earlier on November 26, Morgan Stanley lowered the firm’s price target on Petco to $3.75 from $4.50 and kept an Equal Weight rating on the shares.
- The firm noted that Petco faces persistent hurdles due to an intense competitive landscape and a sluggish macroeconomic environment.
- These external pressures have obscured the timeline for a definitive rebound in sales and further gains in profitability, leading to a cautious outlook.
