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Broker highlights undervalued vet division at Pets at Home amid retail struggles

Market News
27 May 2026, 18:06 WIB
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Bullish
Broker highlights undervalued vet division at Pets at Home amid retail struggles

Shore Capital points out that Pets at Home's veterinary division is undervalued despite the retail side's weakness. The group reported a 1% rise in consumer revenue to £1.98 billion but a 30% drop in adjusted pre-tax profit to £93 million. Retail revenue fell 1% with a 58% profit decline, while the vet business grew revenue by 5% and profit by 10%. The company plans further vet practice expansions and a new pet insurance launch, expecting profit growth in the current year with adjusted pre-tax profit forecast at £98 million. Shares rose 6% on these prospects, though valuation metrics remain average for retail.

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