- JMP Securities analyst Ronald Josey lowered the price target on Rover Group Inc (NASDAQ:ROVR) to $11 (131% upside) from $15 and kept an Outperform rating on the shares post Q4 results.
- The analyst stated that omicron has increased cancellation rates in Q4 and impacted demand in Q1, limiting revenue visibility for 2022.
- In the longer term, pet ownership is at all-time highs, and people are spending more on pet services. With travel still normalizing, Rover's guidance is likely "conservative," Josey noted.
- Rover provided Q1 FY22 sales outlook of $25 million - $27 million versus the consensus of $32.29 million.
- Rover expects FY22 sales of $160 million - $180 million, below the Street view of $200.51 million.
- Price Action: ROVR shares are trading lower by 6.74% at $4.43 in premarket on the last check Tuesday.
