Investing.com -- Chewy received two analyst upgrades this week after its second-quarter earnings, with Seaport Research and Deutsche Bank both turning bullish on the firm’s long-term growth prospects.

Seaport Research upgraded Chewy to Buy from Neutral with a $47 price target, citing “continued top line momentum and share gains.”

The firm highlighted Chewy’s 8.6% year-over-year revenue growth in the quarter, underpinned by strength in net sales per active customer and resilient margins.

While higher SG&A costs weighed on the stock post-earnings, Seaport said investments in initiatives like Chewy+ membership and fresh food should drive future share gains.

“Our positive fundamental thesis is based on [Chewy’s] leading position in the U.S. pet industry with strong brand” and expectations for “10%+ LT EBITDA margins from scale efficiencies and higher margin areas,” the analysts wrote.

Deutsche Bank also upgraded Chewy to Buy, setting a $45 target and noting 28% potential upside.

Analyst Lee Horowitz said the firm’s prior caution stemmed from concerns that growth investments would weigh on earnings against a weak pet industry backdrop.

However, after management outlined its investment strategy, Deutsche Bank now views those initiatives as enhancing Chewy’s long-term earnings power.

“It strikes us that there are more levers for accelerative revenue growth in 2026 and beyond than downside risks,” Horowitz wrote, pointing to Chewy’s push into high lifetime-value products such as private label consumables and fresh food offerings.