Chewy Inc. (CHWY) PT Raised to $24 at BofA Securities

BofA Securities analyst Curtis Nagle raised the price target on Chewy Inc. (NYSE: CHWY) to $24.00 (from $20.00) while maintaining a Underperform rating.

The analyst comments "Reported 2Q rev inline with Street at $2.86bn, with EBITDA of $145mn above Street at $112mn, driven by GM and SG&A leverage. Active customers of 20.0mn were inline vs. Street with net adds modestly up QoQ, while NSPAC grew to $565. Autoship generated 78.4% of sales (+230bps YoY), and Hard good trends inflected positively for the first time since 2Q23. Gross margin of 29.5% was above Street at 28.9% and driven by sponsored ads and greater sales mix into health care, which is trending ahead of expectations (Chewy Vet Care also opening two add'l clinics in Colorado & Florida, bringing its total clinic count to 6). Non-GAAP SG&A represented 18.8% of sales, 100bps of leverage YoY, with improvement driven by corporate payroll discipline and ongoing investments in automation."

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