Pets at Home raises profit expectations after strong summer

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Pets at Home Group PLC (LON:PETS) said its full-year underlying pre-tax profit is estimated to be ahead of the current market expectation for GBP73mln.

The pet care business, which could only sell a limited amount of products during the coronavirus (COVID-19) pandemic lockdown, said the momentum seen after all its operations restarted in the summer has continued through the past month.

READ: Pets at Home preferred by Liberum among animal health stocks

In the eight weeks to September 10, 2020, the company said it delivered “double-digit like-for-like growth in customer sales”.

Analysts at Peel Hunt raised the target price to 350p from 300p and upgraded full-year profit expectations to GBP85mln from GBP77mln.

“Our assumptions suggest a very material slowdown from here, but deep down we know that it is unlikely, so forecast momentum definitely remains here: a special dividend is a possibility in time,” they noted.

Shares shot up 15% to 351p on Thursday morning.

–Adds analyst comment, shares–

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