Chewy Inc. (CHWY) Investor Meetings Indicate Customer Growth Remains Challenged - JPMorgan

JPMorgan analyst Doug Anmuth reiterated an Overweight rating and $55.00 price target on Chewy Inc. (NYSE: CHWY) after hosting CEO, Sumit Singh, and CFO, Mario Marte for a series of investor meetings which indicated active customer growth remains challenged, exacerbated by stock outs.

The analyst stated "CHWY’s customer growth continues to be impacted by the large COVID cohort added in 2020, & ~70% of Active Customers joined in the last 3 years. Importantly, gross adds ran above 2019 levels for all quarters of 2021, but the company is seeing slightly elevated attrition on the bigger base of customers. Specifically, CHWY indicated that retention rates were down only a couple points from historical levels. Naturally, most attrition occurs between Year 1 and Year 2, w/less in Year 3 & beyond. Beyond the COVID cohort, we believ there is also some impact to customer growth from macro factors including reopening, inflation, & higher out-of-stock levels,"

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 $43.30 yesterday.

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