CENT - Central Garden & Pet Company trades lower after Argus warns on near-term headwinds

Argus lowers its rating on Central Garden & Pet Company (NASDAQ:CENT) to Hold from Buy. Analyst Kristina Ruggeri: "The company has benefited from increased pet ownership and reduced mobility during the pandemic, as consumers spend more time at home. It has also been gaining market share through acquisitions, with four recent purchases, and has signaled that additional acquisitions are part of its long-term strategy. However, the company is being hurt by supply-chain disruptions and labor shortages, and facing delays in the implementation of new e-commerce and automation initiatives." Ruggeri notes that CENT Management also sees a growing impact from cost inflation in the coming quarters that it does not expect to be able to offset with higher prices. Those factors lead Argus to slap the Hold rating on CENT until signs of moderating cost inflation and supply-chain improvement are seen. Shares of Central Garden & Pet Company (CENT) are down

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Central Garden & Pet Company trades lower after Argus warns on near-term headwinds