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Investing.com - Piper Sandler has maintained its Overweight rating and $48.00 price target on Chewy Inc. (NYSE:CHWY), representing a 23% upside from the current price of $39.12. The online pet retailer, now valued at $16.2 billion, continues to show positive trends in veterinarian preferences and service adoption. According to InvestingPro data, the company maintains strong financial health with a GOOD overall score.
According to Piper Sandler’s survey, veterinarians who prefer Chewy over PetMeds increased to 36% of respondents, representing a 10-point year-over-year gain. The survey also showed that vets preferring Chewy to Covetrus rose to 8%, up from 6% in Spring 2024. This growing preference aligns with the company’s robust 9.2% revenue growth over the last twelve months.
Awareness of Chewy’s own clinics, which currently number 15 locations, continues to improve with 53% of veterinarians now familiar with the service, a 1-point sequential increase. Adoption of Chewy’s PracticeHub has doubled since Spring 2024, reaching 30% of surveyed veterinarians.
The research firm noted some uncertainty regarding new pet formation, with 51% of veterinarians expressing optimism about new pet ownership growth in 2026, a decrease compared to Fall 2023 data.
Despite these mixed signals on industry-wide pet adoption, Piper Sandler highlighted that Chewy has experienced acceleration in net additions for four consecutive quarters, suggesting the company is gaining market share regardless of broader market conditions. Nine analysts have recently revised their earnings estimates upward, according to InvestingPro, which offers comprehensive analysis through its Pro Research Report, available for over 1,400 US stocks.
In other recent news, Chewy Inc . reported second-quarter results that slightly exceeded consensus estimates for both revenue and EBITDA, with strong gross margins. However, the company’s higher selling, general, and administrative expenses were attributed to temporary cost items, as noted by TD Cowen, which lowered its price target from $50 to $48 while maintaining a Buy rating. Piper Sandler reiterated its Overweight rating with a $48 price target, highlighting Chewy’s strong customer additions and sales, though the bottom-line results did not improve as expected. CFRA raised its price target to $54, maintaining a Strong Buy rating, citing expectations for long-term margin growth and projecting adjusted EBITDA margins to surpass 10% in the future. Additionally, CFRA increased its earnings estimates to $1.26 per share for fiscal year 2026 and $1.67 for fiscal year 2027. Meanwhile, UBS and RBC Capital both lowered their price targets to $43, with UBS maintaining a Neutral rating and RBC Capital maintaining an Outperform rating, both citing concerns over margin progression despite Chewy’s market share gains. These developments highlight the varied analyst perspectives on Chewy’s financial performance and future prospects.
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