Rover Group Inc. (ROVR) PT Lowered to $10 at Stifel

Stifel analyst Lamont Williams lowered the price target on Rover Group Inc. (NASDAQ: ROVR) to $10.00 (from $12.00) while maintaining a Buy rating following better Q4 results but lower Q1 guidance.

The analyst commented, "Rover reported 4Q revenue at the high end of its pre-announced range and adj. EBITDA results ahead of consensus. The company provided 1Q and fiscal year guidance below expectations, pressuring shares after hours. The 1Q revenue outlook reflects an estimated $6mm impact from Omicron, which has impacted demand and resulted in an elevated cancellation rate in January. The high end of FY:22 guidance reflects a modest impact from new variants through the balance of the year. The company announced that CFO, Tracy Knox, will be stepping down in September and will be succeeded by current VP of Finance, Charlie Wickers. While the Delta and Omicron variants have slowed the path to recovery, Rover is well positioned as the leader in pet services with strong industry tailwinds. We are taking down our FY:22 estimates reflecting the continuing effects of the pandemic, resulting in a decline in our price target to $10."

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