Deutsche Bank Reiterates Hold Rating on Chewy Inc. (CHWY)

Deutsche Bank analyst Leo Horowitz reiterated a Hold rating and $18.00 price target on Chewy Inc. (NYSE: CHWY).

The analyst comments "With Chewy set to report F1Q24 earnings on May 29th, we adjust our model based on our industry checks, analysis of third-party user data, and the most recent Pet category CPI data. For F1Q24, both Second Measure (credit + debit card data) and App data via SensorTower point to a Y/Y decline in active customers in the 1Q. That said, the magnitude between the two sources is a bit divergent with relatively stable Y/Y user declines since 1Q24 guidance was issued versus steeping user losses according to SensorTower. Ultimately, with Pet Household formation that remains under pressure (~-30% in the 1Q, according to pet adoption data sources) along with an upward bias to churn amongst the newest cohorts at Chewy, we don’t see an inflection to Chewy user growth on the horizon, and we thus expect shares to remain under pressure for the foreseeable future. All in, we look for Chewy’s active customers to decline 180bps Y/Y (vs. street at -190bps Y/Y), ~20bps deceleration from the 4Q."

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 $16.04 yesterday.

You May Also Be Interested In

• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Genco rejects Diana Shipping bid, calls offer below NAV
• Hydrofarm Holdings Group, Inc. (HYFM) Misses Q2 EPS by 134c