PetSmart Started as a "Buy" at Jefferies & Co. (PETM)

Pet supplies retailer PetSmart, Inc. ( PETM ) saw its coverage initiated on Tuesday with a "Buy" rating by analysts at Jefferies & Co.

The analyst also set a $39 price target on PETM stock, which had closed at $32.94 on Monday. Jefferies noted that the company should benefit from an uptick in discretionary spending by consumers.

PetSmart shares were mostly flat in premarket trading Tuesday.

The Bottom Line

Shares of PETM have a 1.21% dividend yield, based on last night's closing stock price of $32.94. The stock has technical support in the $28-$30 price area. If the shares can firm up, we see overhead resistance around the $35 price level. We would remain on the sidelines for now.

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 .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.