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Pets at Home Shares Rally – Here’s Why

Sam Boughedda trader
Updated 4 Jun 2024

Pets at Home's (LON: PETS) shares continued to rally Monday following last week's FY24 earnings. The stock was given a further boost following an upgrade by one investment firm.

Pets at Home store

YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Pets At Home shares closed Friday's session just below the 300p mark, but on Monday, they continued to surge, climbing almost 9% to 322.6p, pushing them into positive territory for the year.

Analysts at Liberum helped that rally, raising their rating for Pets at Home to Buy from Hold and assigning it a new price target of 360p, up from 290p per share.

The firm communicated to investors in a research note that there are several reasons to remain optimistic about the company's future. One key factor is the upcoming launch of a new digital platform. In its FY24 earnings release last week, PETS described it as “an important milestone in the digitisation of the business.”

Additionally, Liberum highlighted the easing of cost pressures, which have been a significant challenge in recent times. This improvement, coupled with a gradual reduction in inflation, is anticipated to positively impact the company's financial performance.

On Friday, analysts at Berenberg lowered the firm's price target on Pets at Home Group to 330p from 390p, keeping a Hold rating on the shares.

Pets at Home reported FY24 underlying profit before tax of £132 million, down 3.2% year-on-year, while revenue for the period grew 5.2% to £1.5 billion, with group like-for-like revenue up 5.1%.

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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.