'Petness Overloaded': JPM initiates pet services firm Rover with 'neutral'

Rover

07/07/2022 10:26

** J.P.Morgan starts coverage of online pet care marketplace
Rover Group  ROVR.O  
    ** JPM initiates with 'neutral' rating given ROVR's bookings
are correlated to leisure travel, which is increasingly at risk
of slowing in late 2022/23 amid growing macro headwinds 
    ** Brokerage's PT of $5 is lowest among eight analysts
covering the stock, as per Refinitiv data
    ** However, JPM believes Rover is clear leader in the pet
services category with more than ten times the scale compared to
its closest competitor "Wag!"
    ** "Rover is driving the pet services shift online, with
potential to unlock latent demand" - JPM
    ** Brokerage believes Rover has opportunity to grow the pet
services market by addressing current industry friction points
such as pricing, pet care customization and trust/safety
    ** ROVR down 58.5% YTD, as of Wednesday's close

 (Reporting by Siddarth S in Bengaluru)
 ((Siddarth.s@thomsonreuters.com;))