PetSmart's (NASDAQ:PETM) PetsHotel Should Jump During Holidays

Jefferies likes what they see with PetSmart (NASDAQ:PETM), which should get a nice bump during the holidays from their PetsHotel, while continuing to increase sales against their competitors.

Over the long term, Jefferies believes PetSmart will continue to grow market share with their GNC vitamins for Pets. Also noted for growth are products for fleas, ticks and services.

Earnings per share estimate for full year 2011 were raised by Jefferies from $1.97 to $1.98. They maintain a "Buy" rating on PetSmart.

Even with the strong outlook, there are some concerns from others about the pet market in general, as the recession continues to affect the pocketbooks of consumers.

That has caused the share price of the company to fall after their earnings report Wednesday, even though they met expectations.

The closed Thursday at $36.88, plunging $1.40, or 3.66 percent. Jefferies has a price target of $43 on the, increasing it from $39.