Chewy's Latest Analyst Ratings Raise Eyebrows: What's Brewing Behind the Pet Retail Giant's Numbers?
Portfolio Pulse from Anusuya Lahiri
BofA analyst Curtis Nagle maintained an Underperform rating on Chewy, Inc (CHWY) with a price target of $16. Nagle's projections for Chewy's 3Q23 earnings are slightly above consensus for revenue but below for EBITDA. He reduced 4Q estimates based on weak credit and debit card data and expects customer net adds to remain negative. Long-term growth is anticipated from industry trends, fulfillment investments, and pet health segment expansion. However, near-term expectations are cautious with no significant new revenue drivers or cost reductions foreseen. The company's focus on Pet Health is expected to be a key topic at the upcoming Investor Day. CHWY shares have dropped 48.1% year-to-date and were down 1.74% at last check.
December 05, 2023 | 6:03 pm
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NEGATIVE IMPACT
BofA analyst Curtis Nagle reiterated an Underperform rating on Chewy with a price target of $16, citing near-term caution despite long-term growth prospects in the pet health segment. The company's shares have significantly declined year-to-date.
The Underperform rating and lowered price target by a BofA analyst suggest a bearish outlook for Chewy in the short term. The negative sentiment is reinforced by the year-to-date stock performance and recent price action. The analyst's cautious stance on near-term growth and the absence of new revenue drivers or significant cost reductions could lead to downward pressure on the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100