Chewy Inc. (CHWY) KPIs Likely to Improve in FY22, Wolfe Research Previews Earnings
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Wolfe Research analyst Deepak Mathivanan reiterated an Outperform rating and $90.00 price target on Chewy Inc. (NYSE: CHWY) ahead of 3Q results and after shares traded down 28% since the 2Q print on concerns of slowing customer growth. Despite the recent weakness, the analyst sees a path for KPIs, including net adds, to improve in FY22, leading to outperformance.
The analyst stated "We expect CHWY to report 3Q results largely in-line with expectations, with revenues coming in slightly above the mid-point of the company’s prior guidance. CHWY has exceeded the mid-point of its revenue guide by 2% on average over the last four quarters. Net adds is likely to be soft once again in 3Q due to impact of customer roll off from large COVID cohorts. On the outlook, magnitude of supply chain challenges during holiday
season is the key unknown but we expect CHWY to firm up 4Q revenue guide near 20% y/y growth. Overall, we are not expecting big surprises on the print and estimate revisions post-earnings is also likely to be modest."
Shares of Chewy Inc. closed at $62.69 yesterday.
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