Shares of Petco Health and Wellness (NASDAQ: WOOF) rebounded 10.6% on Thursday, defying several analyst downgrades on the heels of a much larger post-earnings drop yesterday. Perhaps unsurprisingly, several analyst firms subsequently downgraded their respective per-share price targets on Petco in response, including Wedbush (to $3.50 from $4.50), Bank of America (to $5 from $10), Baird (to $3 from $8), and Wells Fargo (to $3 from $7). Perhaps yesterday's drop was an overreaction, and the market is taking a more optimistic stance for Petco's operational reset amid the latest data showing inflation continues to soften.