11:27 AM EDT, 05/29/2024 (MT Newswires) -- Petco Health & Wellness' (WOOF) management changes will help drive operational reset, Wedbush said in a note Wednesday.

"We look for the company to boost store productivity and efficiency over the next year through merchandising, labor and operational changes," Wedbush analysts, including Seth Basham, said.

They pointed to the hiring of James Roth as the new chief stores officer, which effectively replacing COO Justin Tichy, who is leaving the company, as Roth is bringing over 23 years of experience at Abercrombie & Fitch (ANF), where he led the stores team and helped turn around the retailer.

In addition, Petco is conducting a review and rationalization of its pricing and assortment strategy, which could potentially drive significant profit improvement, the analysts said.

Wedbush reiterated its outperform rating on the stock with a price target of $4.

Shares of the company fell over 7% in recent trading.

Price: 3.16, Change: -0.27, Percent Change: -7.75