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Highlights

  • Canaccord and Jefferies reaffirm positive ratings on Pets at Home Group.

  • Company updates FY26 guidance with underlying PBT expected between GBP 110-120m.

  • Vet Group continues growth; retail sees sequential improvement despite subdued market.

Pets at Home Group Plc (LSE:PETS) finds itself under the analytical spotlight of leading investment firms Jefferies and Canaccord Genuity. Analyst Andrew Wade from Jefferies Financial Group recently reiterated a "Buy" rating for Pets at Home, alongside a price target adjusted to GBP 250p from a previous GBP 330p. 

Canaccord Genuity also updated its assessment of Pets at Home, maintaining a "Buy" rating while lowering its price target to GBP 245p from GBP 285p. 

Recent Business Updates

On 18 September, the company announced that CEO Lyssa McGowan had departed with immediate effect. Ian Burke, the non-executive chair, has stepped in as executive chair while the board conducts a search for a permanent CEO. The board expressed gratitude to McGowan for her leadership since 2022.

Alongside the leadership update, Pets at Home provided an unscheduled trading update for FY26. The company noted that retail trading has remained subdued, with the underlying market slightly declining year-to-date. Despite this, retail performance has improved sequentially, narrowing the gap to the market, though the pace of recovery remains below expectations. Digital sales have continued to outperform, with double-digit growth supported by the improved platform and increased Easy Repeat subscriptions. Conversely, in-store sales have declined by 5% year-to-date.

The Vet Group continues to deliver high-single-digit growth and is on track to open 10 new practices and complete 15 extensions in FY26, .

For the 16 weeks ending 17 July 2025, Pets at Home reported total consumer revenue of £591m, a 0.4% increase compared with the prior period, reflecting resilience against a still-subdued market. Vet Group consumer revenue grew 7.1%, driven by higher average transaction values and increased Care Plan adoption. Retail consumer revenue fell 3%, though sequential improvement was observed following the completion of the transition of online sales to the Stafford Distribution Centre. Group statutory revenue decreased 1.9% to £435m, with like-for-like revenue declining by the same percentage.

Gross margins have remained resilient, supported by disciplined cost control and measures to mitigate £20m of externally imposed cost pressures in FY26. Customer metrics continue to show improvement, with Pets Club membership reaching 8.1m, average customer value up 1% year-on-year, and significant growth in digital sales and subscription revenues.

Looking ahead, Pets at Home now expects underlying FY26 PBT in the range of £110-120m, slightly adjusted to reflect weaker retail market growth in the first half of the year. The company continues to expect sequential improvement in retail performance and contribution from its Vet Group. Productivity initiatives remain on track, and a £25m share buyback program has progressed with approximately 25% completed in Q1, reducing the share count by around 2.7m.