Oppenheimer Sticks to Their Buy Rating for Petiq Inc

In a report released today, Brian Nagel from Oppenheimer maintained a Buy rating on Petiq Inc (NASDAQ: PETQ), with a price target of $28. The company’s shares closed yesterday at $19.34.

Nagel said:

“Yesterday, after the market close, Outperform-rated PetIQ (PETQ) reported Q1 (Mar.) results and reiterated 2018 financial guidance. PETQ has turned quite controversial as a group of rather vocal investors have expressed loudly concerns over the company’s business model and controls. We studied closely last night’s release and chatted extensively with PetIQ senior management. We come away increasingly upbea‎t toward prospects for the company and its shares, and incrementally encouraged that not only is the PETQ business model taking shape, but senior leadership is committed to better articulating the nuances of the enterprise to the market. Market sentiment is apt to continue to drive PETQ shares near term. Longer term, we look toward still unfolding and potentially superior sales and EPS power as the key determinants of shares.”

According to TipRanks.com, Nagel is a 4-star analyst with an average return of 4.1% and a 58.9% success rate. Nagel covers the Services sector, focusing on stocks such as Restoration Hardware Holdings Inc, Dick’s Sporting Goods, and Advance Auto Parts.

Currently, the analyst consensus on Petiq Inc is Strong Buy and the average price target is $29, representing a 49.9% upside.

In a report released yesterday, Jefferies also reiterated a Buy rating on the stock with a $30 price target.

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Based on Petiq Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $2.03 million. In comparison, last year the company had a net profit of $4.28 million.

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PetIQ, Inc. is a holding company, which engages in the manufacture, procurement, packaging, and distribution of pet health and wellness products. It operates through the Domestic and International segments. The Domestic segment involves the Unites States and Canada markets. The International segment deals with Europe.