2024-04-10 08:35:23 ET
Summary
- Central Garden & Pet's stock has risen nearly 30% since our Strong Buy rating, warranting a reassessment of its prospects.
- The company achieved an 80 basis point gross margin expansion and entered positive earnings-per-share territory. Moreover, the company added valuable liquidity to its balance sheet.
- Central Garden & Pet's online sales now account for 29% of its revenue mix, and there is potential for further margin expansion.
- Despite the positives, key metrics suggest Central Garden & Pet is priced in. Additionally, the stock usually underperforms in the summer months.
- Downgraded to Hold.
This article revises Central Garden & Pet Company's ( CENT ) prospects. Central Garden & Pet is a North American distributor of garden & pet products undergoing significant structural change amid the repositioning of its supply chain and a systematic shift in inflation....
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For further details see:
Central Garden & Pet: Its Latest Surge Seems Overdone (Rating Downgrade)