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Oppenheimer started off coverage on Wag! Group Co. (NASDAQ:PET) with an Outperform rating.

Analyst Jason Helfstein and team think the technology-enabled pet care player is well positioned to grow as more pet services shift online. Crucially, they noted that a significant portion of Wag!’s near-term growth is contingent on the shift away from remote work.

“Our 2026 service estimate would imply 190K households using the platform 2.0x weekly. This is 3% of our estimated 7.4M households that might shift to online dog-walking and pet service bookings. Currently modeling positive EBITDA profitability in FY24 and no need for additional funding.”

The stock is noted to be traded at a depressed level due to reduced investor appetite for small-cap companies not yet cash-flow-positive. Oppenheimer assigned a price target of $5 to rep more than 80% upside potential.

Shares of PET moved up 4.62% in premarket action on Tuesday to $2.72.


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