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UPDATE: Needham & Company Upgrades Chewy Inc. (CHWY) to Buy

June 27, 2022 5:52 AM EDT
Get Alerts CHWY Hot Sheet
Price: $32.05 --0%

Rating Summary:
    17 Buy, 6 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 3 | Down: 3 | New: 12
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(Updated - June 27, 2022 5:52 AM EDT)

Needham & Company analyst Anna Andreeva upgraded Chewy Inc. (NYSE: CHWY) from Hold to Buy with a price target of $55.00.

The analyst comments "We are upgrading CHWY to Buy with a $55 PT. After 4 quarters of missing consensus EBITDA (and 3 quarters of missing consensus Sales), CHWY beat expectations in 1Q22, and we think the positive momentum continued into 2Q22 as 1) pet category is inelastic, with price increases sticking; 2) supply chain is improving (we think the company's guide for $200-$300M in out-of-stocks for '22 is conservative); 3) pet space looks rational (per WOOF management team and our own promo checks, average basket % off is similar to LY, with higher pricing providing a cushion); 4) company-specific initiatives are driving profitability (we estimate ramping automated FCs contribute 40-60 bps to Adj. EBITDA annually in the next 2-3 years); 5) sentiment is still largely negative with 25% of the float short and 60% of sell-side ratings at Hold."

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 $38.16 yesterday.


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