宠物之家：投资阶段完成，现在将实现更高回报，尤其是在零售领域

Investment phase complete. Nowto deliver improved returns,especially in Retail UK Mid & Small Cap PETSP.L/PETS LNEQUAL WEIGHTUnchanged Forecasts little changed as FY26 earnings were alreadyrebased at pre-close trading update. Platform acknowledgedas "in place", so shareholders now should reasonably expecta return on this investment, which is most needed in Retailgiven weak LFLs / FY25 PBT margins of just 5.6%. EW, PT to285p. UK Mid & Small CapLeisure/ConsumerNEUTRALUnchanged Price TargetGBp 285raised 16% from GBp 245 Price (28-May-25)GBp 267Potential Upside/Downside+6.9%Source: Bloomberg, Barclays Research UK Mid & Small Cap Leisure/Consumer Model update with minimal changes to model:We update our model following FY25 results.The model changes are minimal, given that the company reiterated its FY26 guidance that wasset out in its pre-close trading update (PBT range of £115-125m). We struck our old forecastsnear the mid-point of this range, and see little need to make a material change. Our FY26/7 PBTis upgraded by 0.6%/1%, respectively, with slightly higher EPS changes in FY26/7 of 1.6%/3%.This reflects the £25m share buyback announced at the FY25 results. Richard Taylor+44 (0)20 3555 2650richard.e.taylor@barclays.comBarclays, UK Sharanya Gajapathy+44 0(20) 7773 0188sharanya.gajapathy@barclays.comBarclays, UK FY26 is an important year for delivering on investments:The FY26 cost headwinds (NLW/NICs, etc.) are well known and reflected in the guidance. The business disruption fromimproving the digitaloffer/changingthe supply chain has been a recent headwind to thecompany’s revenue, as well as an area of substantial investment. With this in place, however, webelieve FY26 is an important test of whether the company can start to drive growth in its Retailbusiness, for example via areas such as subscriptions, and driving more growth in accessories(especially online). If this is not achieved, then the Retail business could come under furtherpressure given the low margins. The new financial framework is more conservative, with lowergrowth expected, and whilst this may be a disappointment to investors, we believe expectationsare more realistic, especially for Retail. We stay on the sidelines with an EW rating, Price Target to 285p (previously 245p):There ismuch to admire about the Vet Group division, in our view, which is delivering attractive growth,and we acknowledge that the company’s EV/EBITDA valuation is well below some transactionsin private markets. However, our forecasts suggest that Retail PBT margins will fall to c4.5% inFY26. If Retail revenues disappoint again, and margins fall further, this could lead to concernsover the profitability of Retail in the longer term, and undermine more bullish “sum of the parts”valuation arguments given that that the majority of Vet Group sites are collocated within Retail Barclays Capital Inc. and/or one of itsaffiliatesdoes and seeks to do business with companiescovered in its research reports. As a result, investors should be aware that the firm may have aconflict of interest that couldaffectthe objectivity of this report. Investors should consider thisreport as only a single factor in making their investment decision. This research report has been prepared in whole or in part by equity research analysts basedoutside the US who are not registered/qualified as research analysts with FINRA. Please see analyst certifications and important disclosures beginning on page 15.Completed: 28-May-25, 21:43 GMTReleased: 29-May-25, 03:00 GMTRestricted - External sites. We raise our Price Target to 285p using an FY26 P/E rating of 15x (previously 13x) as weacknowledge the growing proportion of PBT from Vet Group (58% in FY26) but also reflectingthe re-rating of many UK consumer facing stocks in recent months. Forecast changes Valuation - Price Target to 285p, retain EW We set out our price target, upside case and downside case, and the assumptions that are usedto drive these values. We raise our price target to 285p (from 245p) reflecting a P/E multiple of15x (13x previously). Financial Forecasts Division Drivers FIGURE 4. Retail Division Drivers Cash Flow forecasts Balance Sheet Forecasts Barclays | Pets at Home Analyst(s) Certification(s): I, Richard Taylor, hereby certify (1) that the views expressed in this research report accurately reflect my personal views about any or all of the subjectsecurities or issuers referred to in this research report and (2) no part of my compensation was, is or will be directly or indirectly related to the specificrecommendations or views expressed in this research report. Important Disclosures: Barclays Research is produced by the Investment Bank of Barclays Bank PLC and itsaffiliates(collectively and each individually, "Barclays"). Allauthors contributing to this research report are Research Analysts unless otherwise indicated. The publication date at the top of the report reflects thelocal time where the report was pr