Nomura/Instinet Upgrades Chewy Inc. (CHWY) to Buy, Says Q2 Worries are Overblown

Nomura/Instinet analyst Mark Kelley upgraded Chewy Inc. (NYSE: CHWY) from Neutral to Buy with a price target of $36.00 (from $32.00).

The analyst comments "The stock has traded off since reporting 2Q19 earnings last week driven, in part, by higher-than-expected SG&A. We feel these concerns are overblown; normalizing for certain new and/or non-recurring items (such as fulfillment center buildout and public company costs), the company’s SG&A as a percent of revenue was in line with 2Q18, while gross margins expanded 300bps YoY (and improved sequentially). Considering 2Q19 and 2Q18 were both quarters in which new FCs were launched, we remain confident that the core business continues to perform."

For an analyst ratings summary and ratings history on Chewy Inc. click here. For more ratings news on Chewy Inc. click here.

Shares of Chewy Inc. closed at $26.39 yesterday.

You May Also Be Interested In

• Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
• Mizuho Reiterates Outperform Rating on Broadcom Limited (AVGO) Into EPS
• DA Davidson Reiterates Buy Rating on Box, Inc. (BOX) on Secular Tailwinds for Demand