News Column

PETS AT HOME HOPES TO BE BEST IN SHOW

June 8, 2014



It's pretty apt that Pets at Home offers dog grooming, above, as some in the City have started worrying they've been sold a pup in need of a primp. The pet products shop and veterinary chain was floated in March and - in what is surely a first for a private equity/Goldman Sachs float - the shares have slumped since. They closed last week 12% lower than their 245p offer price.

No matter. Goldman - along with Nomura, another bank on the flotation ticket - have both loyally published research telling investors to buy even more shares, and we should be able to see if that represents sage advice this week, when the retailer unveils its first full-year results statement as a public company.

Still, the dissenters remain with Sahill Shan, an analyst at N+1 Singer, cautioning: "Pets at Home has evolved to incorporate veterinary services as an integral component of the investment case . . . while its aggressive expansion plans in [this] area cannot be dismissed, we question the long-term viability of its joint venture model". In other words, not all analysts are poodles.



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Source: Observer (UK)


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