William Blair on Chewy Inc. (CHWY): 'Investor Meetings Reinforce Confidence in Ability to Execute Despite Still- Adverse Pet Environment Trends'

William Blair analyst Dylan Carden reiterated an Outperform rating and {REMOVEPT} price target on Chewy Inc. (NYSE: CHWY)

The analyst comments "On Monday, April 8, we hosted investor meetings with Chewy CEO Sumit Singh, CFO David Reeder, and Vice President and Head of Corporate Development and IR Jennifer Hsu. Our discussions were largely focused on the company’s opportunity in the broader healthcare space, current customer and business trends, capital allocation priorities, and other growth and margin drivers. To be sure, pet adoption and relinquishment trends have remained pressured in the near term, and as a result management continues to expect 2024 to be a transition year for pet household formation, with 2025 marking a year of recovery. However, we came away from the meetings with reinforced confidence in Chewy’s ability to drive margins, alongside the company’s long-term positioning in the healthcare space following positive early demand signals from the recently opened clinic in Miami. Moreover, we are particularly looking forward to learning more about Chewy’s capital allocation priorities in the more medium term."

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 $17.57 yesterday.

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