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PetSmart Started as a “Buy” at ThinkEquity (PETM)

Posted
9/14/2010 9:25:00 AM
By: Dividend.com
Referenced Stocks:PETM

Pet products retailer PetSmart, Inc. ( PETM ) on Tuesday saw its coverage initiated with a "Buy" rating by analysts at ThinkEquity.

The firm also set a $41 price target on PETM, which represents an expected 18% premium over the stock's Monday closing price of $34.60. ThinkEquity noted the company is a market leader and should continue to gain market share.

PetSmart shares were mostly flat in premarket trading Tuesday.

The Bottom Line
Shares of PETM have a 1.45% dividend yield, based on last night's closing stock price of $34.60. The stock has technical support in the $29-$30 price area. If the shares can firm up, we see overhead resistance around the $35 all-time highs. We would like to consider the stock on pullbacks.

PetSmart, Inc. ( PETM ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .