Seaport Global Securities Starts Chewy Inc. (CHWY) at Neutral
Seaport Global Securities analyst Aaron Kessler initiates coverage on Chewy Inc. (NYSE: CHWY) with a Neutral rating.
The analyst comments "We are initiating coverage of Chewy, Inc. with a Neutral rating. On the positive side, Chewy operates in a large U.S. pet market, is the clear vertical ecommerce leader with a strong brand driven by its customer centricity, and has opportunities to capture additional market share through online share shifts and deeper penetration into existing and newer areas including pet healthcare. On the other hand, U.S. pet growth is relatively mature and has normalized post pandemic. Additionally, while pet spending is typically fairly resilient, weakening consumer confidence could potentially pressure spend (particularly for more discretionary items) as well as a headwind for new pet adoptions. Additionally, we believe shares are fairly valued at current levels with a fair value of ~$33 in our view, based on 1.1x 2026E EV/revenues."
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Shares of Chewy Inc. closed at $33.86 yesterday.