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Jefferies raised its price target on Chewy Inc . (NYSE:CHWY) to $44.00 from $43.00 on Thursday, while maintaining a Hold rating on the online pet retailer’s stock. According to InvestingPro data, the stock currently trades at $40.76, with a market capitalization of $16.92 billion and a P/E ratio of 50.21.
The research firm cited Chewy’s strong start to 2025, noting that key metrics are moving in the right direction. Active customers increased 4% year-over-year and are proving more valuable to the company, according to Jefferies. This momentum is reflected in Chewy’s impressive performance, with revenue growing 6.4% and the stock delivering an 81.8% return over the past year.
The firm highlighted that Chewy’s sponsored ads are exceeding internal expectations, and strong execution is driving market share gains for the company. Jefferies noted these positive developments are occurring even as macroeconomic conditions normalize. InvestingPro analysis shows the company maintains a GOOD financial health score, with 15+ additional insights available to subscribers.
Despite the encouraging performance, Jefferies maintained its Hold rating, suggesting it is watching valuation closely for a better entry point. The firm believes Chewy’s 2025 performance will likely be near the high-end of the company’s guidance or better.
Jefferies also pointed to Chewy’s recent leadership change as a factor in the company’s conservative outlook, stating that "a new CFO is likely why guidance was held" despite the positive business momentum.
In other recent news, Chewy Inc. reported stronger-than-expected earnings for the first quarter of 2025, with an adjusted EPS of $0.35, surpassing analyst forecasts of $0.32. The company’s revenue also exceeded expectations, reaching $3.12 billion compared to the forecasted $3.08 billion. Despite these positive results, Chewy did not raise its full-year revenue guidance but directed investors toward the upper half of the existing range. Analysts from Goldman Sachs, Citi, and CFRA have raised their price targets for Chewy, citing strong sales growth and market share gains. Goldman Sachs increased its target to $48, Citi to $49, and CFRA to $53, all maintaining a Buy or Strong Buy rating. The analysts highlighted Chewy’s strategic initiatives, including the expansion of its Autoship sales and Chewy+ loyalty program, as contributing factors to its performance. Chewy’s EBITDA margin showed potential for further expansion, with CFRA noting a 120 basis point increase to 6.2% on a normalized basis. Additionally, Chewy’s debt-free balance sheet and strong free cash flow generation were seen as positive indicators for potential share repurchases.
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