UBS raises Petz price target to 6.50 Real following merger outlook

UBS has raised its price target for Petz from 3.75 to 6.50 Real, upgrading the stock to a 'Buy' rating. The new target is set for the end of 2027, representing a 73.33 percent increase over the previous goal.

The bank's optimistic outlook is driven by the expected merger between Petz and Cobasi. UBS projects an adjusted net profit of 435 million Real for 2027 and an increase to 518 million Real for 2028, excluding extraordinary merger costs. Key factors for success include the effective integration of the two companies, the expansion of private labels, and the continued growth of digital sales, which accounted for 41.40 percent of total revenue in the first quarter of 2026.