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Investing.com - Mizuho maintained its Outperform rating and $50.00 price target on Chewy Inc. (NYSE:CHWY), near the high end of analysts’ range of $34-52, following a reported $500 million block sale of the company’s shares. According to InvestingPro, the company maintains a "GOOD" overall financial health score.
The block sale, reported by Bloomberg, resulted in the stock trading relatively flat at $39.03, compared to the 2-3% share discount indicated after market close the previous day. The stock has shown strong momentum, gaining over 34% in the past year.
Mizuho views the transaction positively, suggesting it could attract more long-only investors to Chewy shares, noting historical patterns where similar private equity drawdowns led to increased long-only ownership and subsequent outperformance relative to the S&P 500.
The firm remains optimistic about Chewy’s outlook and potential upside from new initiatives, despite revising its second-half 2025 estimates to account for $20-25 million in investment spending that will primarily impact gross margins.
Chewy, an online retailer of pet food and other pet-related products, continues to expand its offerings while managing the transition in its investor base.
In other recent news, Chewy Inc . has been the subject of multiple analyst updates following its second-quarter 2025 performance. Piper Sandler reiterated an Overweight rating with a $48.00 price target, highlighting positive trends in veterinarian preferences and service adoption, although these did not lead to improved bottom-line results. CFRA raised its price target to $54.00, maintaining a Strong Buy rating, citing expectations for long-term margin growth and projecting adjusted EBITDA margins to exceed 10% in the future. UBS, on the other hand, lowered its price target to $43.00 while maintaining a Neutral rating, acknowledging Chewy’s market share gains despite challenging industry conditions. TD Cowen also adjusted its price target to $48.00 from $50.00, maintaining a Buy rating after Chewy exceeded consensus estimates for revenue and EBITDA, although the company faced higher expenses due to temporary cost items. These updates reflect a mixed analyst outlook on Chewy, with varying expectations for its financial performance and market position.
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