Oppenheimer analyst Jason Helfstein has maintained their bullish stance on PET stock, giving a Buy rating today.
Jason Helfstein’s Buy rating for the Wag! Group is grounded on several influential factors. Despite persistent liquidity challenges, the company demonstrated robust performance in Q3, with its revenue surpassing both Oppenheimer’s and the market’s expectations. Moreover, there seems to be no waning in consumer interest, with holiday seasons pushing up demand for high-priced overnight services compared to daytime requirements, possibly counterbalanced by weather-related issues.
Helfstein also points out that Wag! Group is targeting a 30%-40% “rule of” in FY24, indicating a potential for strong, consistent revenue growth, improved margins, and positive free cash flow. The company’s forecast for FY24 suggests a 29% increase in revenue and 7% EBITDA margins, up from the previous estimates of 26% and 4% respectively. The price target, which implies a significant 45% discount to peers, is viewed as conservative given Wag! Group’s forecasted ’22-’25E growth rate, which is 111% faster than its competitors.
In another report released today, Craig-Hallum also reiterated a Buy rating on the stock with a $4.50 price target.
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Wag! Group (PET) Company Description:
CHW Acquisition Corp is a blank check company.
