Citi Maintains Hold Rating on Petco Health and Wellness Company with $4.00 Price Target

Citi analyst Steven Zaccone reiterated a Hold rating on Petco Health and Wellness Company with a price target of $4.00. The company's shares closed at $4.36. Zaccone has a 5.0% average return and a 58.10% success rate on recommended stocks. Petco has an analyst consensus of Hold and a price target consensus of $3.75, implying a -13.99% downside from current levels.

Petco Health and Wellness Company, Inc. (NASDAQ: WOOF) is facing a class action lawsuit alleging violations of federal securities laws. The lawsuit, filed against Petco and certain of its officers, seeks to recover damages on behalf of investors who purchased or otherwise acquired Petco securities between January 14, 2021, and June 5, 2025 [1].

The complaint alleges that throughout the class period, Petco made materially false and misleading statements regarding its business, operations, and prospects. Specifically, it is alleged that Petco overstated the sustainability of its business model centered around premium pet food products and downplayed the true scope and severity of issues affecting its sales and profitability [1][2]. As a result, investors suffered substantial losses.

The lawsuit comes at a time when Petco has been struggling financially. The company has had to revise its financial guidance multiple times, with its stock price experiencing significant declines. In August 2023, Petco's stock price fell by 20.64% after the company announced a negative revision to its fiscal year 2023 earnings guidance [2]. In November 2023, the stock price fell by 28.91% after Petco revealed that it had broadened its product offerings to include cheaper pet food brands to improve sales [2]. Additionally, Petco's CEO, Ronald V. Coughlin, Jr., stepped down in March 2024, and the company reported a GAAP net loss of $1.3 billion for the fiscal year 2023 [2].

Investors who purchased or otherwise acquired Petco securities during the class period have until August 29, 2025, to request that the Court appoint them as lead plaintiffs [1][2]. The law firms involved in the lawsuit, Bronstein, Gewirtz & Grossman, LLC and Pomerantz LLP, represent investors in securities fraud class actions on a contingency fee basis [1][2].

References:
[1] https://www.morningstar.com/news/globe-newswire/9495165/woof-investor-alert-bronstein-gewirtz-grossman-llc-announces-that-petco-health-and-wellness-company-inc-investors-with-substantial-losses-have-opportunity-to-lead-class-action-lawsuit
[2] https://www.marketscreener.com/news/pomerantz-law-firm-announces-the-filing-of-a-class-action-against-petco-health-and-wellness-company-ce7c5cddd88cf424