Patterson Cos. (NASDAQ: PDCO) was upgraded by equities research analysts at ISI Group from a “cautious” rating to a “neutral” rating in a research note issued to investors on Monday, TheFlyOnTheWall.com reports. The firm currently has a $39.50 price target on the stock, up from their previous price target of $36.50. ISI Group’s target price would suggest a potential downside of 0.88% from the stock’s previous close.
The analysts wrote, “Ahead of FY1Q earnings and following the acquisition National Veterinary Services, we are upgrading Patterson from Cautious to Neutral and increasing our PT to $39.50. PDCO has been a significant laggard since our launch ~1 year ago, trailing its closest peer, HSIC, by ~1450 bps, trailing the XLV by ~1800 bps, and trailing the S&P500 by ~1150 bps. We view the accretion from the NVS acquisition, combined with contributions from continued share repurchases (we have modeled ~$0.10 of FY14 EPS related to buybacks) limits the downside potential for EPS and should allow the company to deliver low-double digit growth. While we still view the outlook for the company’s core operations (ex. the Sirona relationship) as challenged, we now believe that capital deployment will allow the company to maintain its historical multiple in the ~9x range. We view potential upside to our estimates from any additional M&A, particularly if NVS serves as a platform for further acquisitions. This said, the company would need to see a steady acceleration of top-line growth, in addition to margin expansion, for us to become more constructive on the stock.”
Patterson Cos. (NASDAQ: PDCO) traded up 0.50% on Monday, hitting $39.85. Patterson Cos. has a 52-week low of $31.36 and a 52-week high of $40.02. The stock’s 50-day moving average is currently $38.52. The company has a market cap of $4.035 billion and a price-to-earnings ratio of 19.53.
Patterson Cos. (NASDAQ: PDCO) last issued its quarterly earnings data on Thursday, May 23rd. The company reported $0.62 earnings per share for the quarter, meeting the analysts’ consensus estimate of $0.62. The company had revenue of $964.90 million for the quarter, compared to the consensus estimate of $969.44 million. During the same quarter last year, the company posted $0.58 earnings per share. Patterson Cos.’s revenue was up 3.1% compared to the same quarter last year. On average, analysts predict that Patterson Cos. will post $2.16 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on PDCO. Analysts at Jefferies Group raised their price target on shares of Patterson Cos. from $34.00 to $37.00 in a research note to investors on Friday. They now have a “hold” rating on the stock. Separately, analysts at Zacks reiterated a “neutral” rating on shares of Patterson Cos. in a research note to investors on Wednesday, July 3rd. They now have a $40.00 price target on the stock. Finally, analysts at Ned Davis Research upgraded shares of Patterson Cos. from a “neutral” rating to a “buy” rating in a research note to investors on Monday, July 1st.
One investment analyst has rated the stock with a sell rating, eight have given a hold rating and four have assigned a buy rating to the stock. Patterson Cos. currently has an average rating of “Hold” and a consensus target price of $38.95.
The company also recently announced a quarterly dividend, which is scheduled for Friday, July 26th. Investors of record on Thursday, July 11th will be paid a dividend of $0.16 per share. This represents a $0.64 annualized dividend and a dividend yield of 1.61%. The ex-dividend date is Tuesday, July 9th.
Patterson Companies, Inc (NASDAQ: PDCO) is a distributor serving three markets: the United States companion animal (dogs, cats and other common household pets) and equine veterinary supply, and the worldwide rehabilitation and assistive products supply market.
This article (Patterson Cos. Upgraded to Neutral by ISI Group (PDCO)) was originally developed by and is property of American Banking News.
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