Shore Capital starts Pets at Home with buy rating and 265p target
Shore Capital initiated coverage of Pets at Home with a buy rating and a 265p price target, about 24.5% above the reference price. The retailer's Q1 FY27 retail revenue increased 4.9% to £399.0 million, helped by lower prices, better availability, and volume growth. For FY2026, group pre-tax profit fell 30% to £92.8 million, with retail adjusted pre-tax profit down 58% while the vet business rose 10%.
Shore Capital began covering Pets at Home with a buy call and a 265p target, implying about 24.5% upside from the 212.80p reference price. The broker expects a gradual margin recovery, noting cheaper prices, improved stock availability and renewed volume growth, while the vet unit now supplies more group profit and cash flow.
In Q1 FY27, retail revenue rose 4.9% to £399.0m. FY2026 group pre-tax profit dropped 30% to £92.8m; retail adjusted pre-tax profit fell 58% to £30.8m, while vet profit climbed 10% to £83.8m. The shares sat 7.24% below their 52-week high.
Shore Capital’s buy rating and Pets at Home’s retail rebound may affect investors watching the FTSE 250 specialty retailer, as well as employees, suppliers and pet owners tied to its stores and vet services. If volume growth and availability improve, customers could benefit from steadier stock and competitive pricing, while a gradual margin recovery may influence hiring and investment. Conversely, slower profit recovery could keep share-price volatility elevated, affecting pension funds and retail investors with exposure.