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Investing.com - Citizens JMP has reiterated its Market Outperform rating on Chewy Inc. (NYSE:CHWY) with a price target of $48.00, representing significant upside from the current price of $35.11. According to InvestingPro data, five analysts have recently revised their earnings estimates upward for the upcoming period.
The firm cited Chewy’s increasing service stickiness as a key factor, noting that Autoship penetration grew nearly 5 points year-over-year, while the Chewy+ subscription program is showing strong early results in driving customer engagement. This growth contributes to the company’s solid 9.17% year-over-year revenue increase.
Despite acknowledging that Chewy’s profitability progress could be faster, Citizens JMP has raised its top-line estimates for the company while maintaining they remain conservative.
The firm identified several potential catalysts for future growth, including Chewy’s Vet Clinics and continued progress with health and pharmacy offerings, stating the company has multiple levers to drive business upside.
Citizens JMP expects Chewy to continue gaining market share while expanding margins with consistent 15% incremental margins, and recommended investors purchase shares on any weakness.
In other recent news, Chewy Inc . reported its second-quarter earnings for 2025, demonstrating steady growth in both revenue and earnings per share (EPS), aligning with analyst expectations. The company achieved an EPS of $0.33, which was in line with forecasts, while revenue slightly surpassed predictions, reaching $3.1 billion. William Blair reiterated an Outperform rating for Chewy following these results, highlighting a modest upside in sales, gross margin, and adjusted EBITDA. The firm also noted the addition of 150,000 active customers, which exceeded sell-side consensus expectations but fell short of some buy-side projections.
Meanwhile, BNP Paribas Exane adjusted its price target for Chewy to $34.00 from $38.00, maintaining a Neutral rating. The adjustment was attributed to concerns about market expectations being set too high, which had previously led to a downgrade in December. These developments reflect varying analyst perspectives on Chewy’s performance and future potential. Investors are closely watching how the company navigates market conditions and adjusts its strategies moving forward.
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