PetIQ: Drops as Q3 sales forecast disappoints

PetIQ

07/08/2020 18:24

** Pet health and wellness product maker's shares  PETQ.O 
fall 16.7% to $31.27 - set for biggest one-day decline since
March 16
    ** PetIQ forecasts consolidated net sales of $160 mln-$170
mln in Q3, below Refinitiv IBES estimates of $196.7 mln, as some
of its wellness centers and community clinics remain closed
 urn:newsml:reuters.com:*:nGNX1ZjyMk
    ** The COVID-19 pandemic is disproportionately weighing on
the up and coming services segment of PETQ - Oppenheimer analyst
Brian Nagel 
    ** Brokerages Raymond James and Jefferies cut PT on the
stock; Median PT now at $44, still about 41% above current
trading level
    ** Short interest stood at about 21% of float, as of July 15
- Refinitiv
    ** Nagel, however, sees strong demand for PETQ's services
and product divisions as coronavirus headwinds abate, largely
due to higher pet ownership rates across the U.S.
    ** Current average rating on stock is "strong buy"
    ** Shares up about 25% this year

 (Reporting by Praveen Paramasivam in Bengaluru)
 ((Praveen.Paramasivam@thomsonreuters.com; within U.S. +1 646
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