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magazinePets At Home's new CEO is a great hire and the shares are still a buy
Pets At Home (PETS) 407p
Loss to date: 13%
Original entry point: 467.6p, 22 December 2021
The year has got off to a good start for the team at the UK’s leading pet equipment and veterinary services group Pets At Home (PETS) with an increase in earnings guidance and a new chief executive set to take the hot seat.
Yet the company’s shares are now 13% below where we recommended them due to the general re-pricing of risk since mid-January, which means they look even better value than before.
Like-for-like revenues for the 12 weeks to the end of December rose a better than forecast 9% on the previous year and 28% on 2019 as pet-loving Brits continued to indulge their furry friends and the firm pushed through higher sales of premium products over the Christmas period.
As a result, pre-tax profit for the 12 months to the end of March isnow expected to be at least £140 million compared with £132 million previously, and consensus forecasts for 2023 and 2024 have also been raised.
Meanwhile, former Sky chief customer officer Lyssa McGowan is set to take over from founder and current chief executive Peter Pritchard in June.
This looks a great appointment, McGowan is highly regarded and brings a proven track record at Sky, having been responsible for more than 10 million customers and more than $10 billion of revenues.
SHARES SAYS: We like the stock even more at current prices and would buy more.
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