Benzinga | Dec 6, 2021 01:09PM EST

Wedbush Upgrades This Pet Products Retailer

* Wedbush analyst Seth Basham upgraded Petco Health And Wellness Co Inc (NASDAQ:WOOF) to Outperform from Neutral with a $23 price target, implying a 17% upside.

* Basham said the shares being down 25% since the company reported earnings on November 18 presented an attractive entry point into shares of "a top-notch retailer in a less-discretionary sector."

* The analyst acknowledged the spread of the omicron variant of COVID-19 as a risk for store-based retailers, but called out Petco's evolving holistic premium pet care model as "a standout."

* Basham also contended that Petco is poised to keep taking share with its growing array of services.

* Price Action: WOOF shares are trading higher by 6.35% at $19.60 on the last check Monday.