In key UK stock news, see Pets at Home Group PLC's shares (GB:Pet) fell as veterinary pricing came under scrutiny from the UK watchdog over concerns of overcharging. The Competition and Markets Authority (CMA) today announced that it is preparing to launch a formal investigation into the UK veterinary medicines market over “several issues of concern”, including overcharging. PETS stock is down more than 4% at the time of writing, taking its year-to-date loss to about 14%.
Pets at Home is the UK's leading pet industry specialist retailer, offering a wide range of quality pet care products and services.
CMA allays veterinary market concerns
Today's announcement follows an initial review launched in September 2023, given the importance of this sector to the UK's 16 million pet owners. The CMA found a range of problems, including incomplete consumer information, industry consolidation, weak competitiveness in certain areas, high drug prices and outdated regulations.
As a result, the CMA sought feedback from industry on its proposal to launch a formal investigation.
In January, Pets at Home announced its financial results for the third quarter of 2024. The company's third-quarter consumer revenue increased 6% year over year. This growth was driven by an increase in average customer spending and a 2% year-over-year increase in active VIP members to 7.7 million.
The company plans to release a pre-closure update by the end of this month.
What is the analyst consensus regarding pets in the home?
The news was a blow to the major corporations and affected their stock prices. Share prices in the UK veterinary market may remain volatile until further developments occur.
At TipRanks, the PETS stock has a Hold consensus rating, with 1 Buy recommendation, 1 Hold recommendation, and 1 Sell recommendation backed by. Pets At Home's price target is 358.3p, which is 32.7% above its current trading level.
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