- Pets at Home Group
- 01 April 2025 14:54:11
Source: Sharecast
Berenberg said Pets at Home's FY25 pre-close update on 31 March reaffirmed the "tough outlook" for its retail division. It also noted that while FY25 underlying pre-tax profit guidance of £133.0m, was reiterated, management now expects FY26 PBT to be below consensus at £115.0m-125.0m, principally due to ongoing subdued demand and cost pressures.
The German bank reduced its FY26 group pre-tax profit forecasts by roughly 15% to £121.0m, with the guidance mid-point representing an approximately 10% decline year-on-year, which it also reckons will flow through to FY27.
"The shares are not expensive, and strong cash generation, a healthy dividend yield and potential ongoing share buybacks may provide support. However, bid speculation aside, near-term catalysts appear to be in short supply," said Berenberg, which reiterated its 'hold' rating on the stock.
Reporting by Iain Gilbert at Sharecast.com