Stock price when the opinion was issued
It got very overvalued during the pandemic hype, but this has since normalized. However, systems sales are still growing as they open 40-45 new stores annually. The market remains underserved outside cities. A cap-lite model, generating 22% EBITDA margins, and over 20% ROIC. Strong free cash flow. A great time to buy at 16x PE. Is recession-proof. Likely a takeover candidate.
Our PAST TOP PICK with PET has triggered its stop at $35.50. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 31%, when combined with our previous guidance.