Central Garden & Pet Co. price target lowered to $42 from $45 at BMO Capital. BMO Capital analyst Shannon Coyne lowered her price target on Central Garden & Pet Co to $42 after its Q4 results, saying its "strong expense control and a lower-than-expected tax rate offset a slightly disappointing top line". The analyst sees some near term headwinds for the stock around commodity, freight, and labor costs as well as uncertainty on tariffs, but keeps her Outperform rating longer term based on the management's "strong focus on cost reduction".
Central Garden & Pet Co. initiated with an Overweight at KeyBanc. KeyBanc analyst Bradley Thomas started Central Garden & Pet Co. with an Overweight rating and $39 price target. The analyst believes Central Garden & Pet Co. is "attractively" positioned to deliver solid organic growth, accretive acquisitions, margin expansion, and healthy cash flow generation. Its exposure to the Pet and Garden categories is supportive of continued growth as well as relative insulation from cyclical risk, he contends.
Central Garden & Pet Co. initiated with an Outperform at BMO Capital. BMO Capital analyst Shannon Coyne initiated Central Garden & Pet with an Outperform rating and a price target of $45. The analyst cites the company's "unique product portfolio" and a "strong dominant position in niche categories" as both garden and pet categories grow by about 3% per year. Coyne anticipates the secular industry growth to produce annualized sales and EBITDA growth for Central Garden & Pet at 3-5% and 8-10% respectively.