CENT - Central Garden & Pet rallies after Argus turns bullish

Argus upgrades Central Garden & Pet Company (CENT) to a Buy rating after the firm had it slotted at Hold.Analyst Kristina Ruggeri: "Central Garden is a leading producer and marketer of pet, lawn and garden products. 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 three recent purchases, and has signaled that additional acquisitions are part of its long-term strategy."Ruggeri thinks those efforts to grow the business are paying off with revenue and earnings above analyst expectations in recent quarters."Despite rising commodity, labor, and transportation costs, management also expects continued strong earnings over the remainder of FY21," she notes,CENT is trading at 22X the firm's FY21 EPS estimate, compared to a five-year historical average range of 15X to 22X and peer average of 23. Argus assigns a price

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Central Garden & Pet rallies after Argus turns bullish