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Investing.com - Citizens JMP maintained its Market Outperform rating and $48.00 price target on Chewy Inc . (NYSE:CHWY) on Wednesday, citing expectations for better-than-expected fiscal second-quarter 2026 results. According to InvestingPro data, the stock is trading near its Fair Value, with 10 analysts recently revising their earnings estimates upward for the upcoming period.
The firm anticipates strong performance driven by ramping veterinary clinics, continued advertising growth, and a healthy U.S. consumer environment. Citizens JMP also expects Chewy to raise its forward estimates, suggesting confidence in the company’s outlook beyond the current quarter. This optimism appears well-founded, as the company has demonstrated solid financial performance with $12.1 billion in revenue and 7.7% year-over-year growth.
The research firm noted that the competitive landscape appears favorable for Chewy, particularly as Petco (NASDAQ:WOOF) works through operational improvements. Citizens JMP highlighted that pet household formation has stabilized following the COVID-19 pandemic surge. The company’s strong market position is reflected in its impressive 53.5% total return over the past year.
The firm identified several growth drivers for Chewy, including early-stage pharmacy and health services, along with advertising that "has room to contribute materially more" now that it’s under Chewy’s direct control.
Citizens JMP believes these factors provide both near-term catalysts for the upcoming earnings report and medium-term growth opportunities, supporting its view that Chewy’s EBITDA can continue to compound.
In other recent news, Chewy Inc. is preparing to release its fiscal second-quarter 2026 results, with Citizens JMP reiterating a Market Outperform rating and a $48.00 price target. The firm anticipates better-than-expected earnings, driven by new veterinary clinics, advertising growth, and a strong U.S. consumer environment. Barclays (LON:BARC) has maintained its Overweight rating and $50.00 price target on Chewy, despite a recent 14% stock decline, noting that a significant stock sale by BC Partners did not alleviate short selling as expected. BofA Securities also reiterated a Buy rating with a $49.00 price target, emphasizing the growth potential in veterinary care and pharmaceuticals, a market valued at $40 billion. Additionally, JMP Securities raised its price target for Chewy to $48.00 from $39.00, citing the substantial U.S. pet spending market and the trend of pet humanization. A survey by RBC Capital Markets revealed that Chewy’s popularity among pet owners has increased, with 48% of pet owners shopping there in the past year. Chewy ranks as the third most popular retailer among pet owners, following Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT). These developments highlight the company’s strategic positioning and potential growth in the competitive pet retail market.
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