Chewy's Millennial Muzzle: How Rising Pet Spending Could Fetch Higher Sales
Portfolio Pulse from Shivani Kumaresan
Needham analyst Anna Andreeva reiterated a Buy rating on Chewy Inc (NYSE:CHWY) with a price target of $55. The company is set to report 1Q earnings on May 31. The analyst expects sales growth of +12%, but has lowered assumptions for net ads and Hardgoods after Petco Health and Wellness Company (NASDAQ:WOOF) earnings. The pet space is defensive, and demand is inelastic, with headwinds from last year dissipating.
May 26, 2023 | 5:30 pm
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POSITIVE IMPACT
Needham analyst Anna Andreeva reiterated a Buy rating on Chewy Inc with a price target of $55. The company is set to report 1Q earnings on May 31, with sales growth of +12% expected.
The Buy rating and price target of $55 by Needham analyst Anna Andreeva indicate a positive outlook for Chewy Inc. The expected sales growth of +12% for 1Q earnings also supports a positive short-term impact on the stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Petco Health and Wellness Company (NASDAQ:WOOF) earnings led to lowered assumptions for net ads and Hardgoods for Chewy Inc. The pet space is defensive, and demand is inelastic, with headwinds from last year dissipating.
While Petco Health's earnings led to lowered assumptions for net ads and Hardgoods for Chewy Inc, the pet space remains defensive and inelastic. This suggests a neutral short-term impact on Petco Health's stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50