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Investing.com - Jefferies has reduced its price target on Chewy Inc. (NYSE:CHWY) to $41.00 from $44.00 while maintaining a Hold rating on the pet e-commerce company’s shares. The stock, currently trading at $35.11, has experienced a significant 14.7% decline over the past week, according to InvestingPro data.
The price target adjustment follows Chewy’s second-quarter results, which Jefferies described as "solid" but noted were overshadowed by the company’s plans for upcoming investments.
According to Jefferies, these investments are intended to drive further market share gains and increase average customer spending at the online pet retailer.
The research firm indicated that while management’s conviction in the opportunity is encouraging, the investment plans signal a shift in the balance between growth and profit delivery for Chewy.
Jefferies concluded that while these investment decisions are "likely the right moves long term," they fundamentally change the company’s near-term investment narrative.
In other recent news, Chewy Inc . reported its second-quarter 2025 earnings, revealing steady growth in both revenue and earnings per share (EPS), aligning with analyst expectations. The company posted an EPS of $0.33, while revenue slightly exceeded predictions at $3.1 billion. Following the earnings announcement, Seaport Global Securities upgraded Chewy’s stock from Neutral to Buy, citing strong revenue growth of 8.6% year-over-year and robust performance in net sales per active customer. William Blair also reiterated an Outperform rating, noting modest upside in sales, gross margin, and adjusted EBITDA, alongside a sequential addition of 150,000 active customers.
Citizens JMP maintained its Market Outperform rating, highlighting Chewy’s increasing service stickiness, with significant growth in Autoship penetration and promising results from the Chewy+ subscription program. However, BNP Paribas Exane lowered its price target for Chewy to $34, maintaining a Neutral rating due to concerns about high market expectations. These developments reflect a range of analyst perspectives on Chewy’s recent performance and future prospects.
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