William Blair analyst Dylan Carden has maintained their bullish stance on CHWY stock, giving a Buy rating today.
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Dylan Carden has given his Buy rating due to a combination of factors related to Chewy’s strategic expansion and capital deployment. He views the Modern Animal acquisition as a meaningful step in building out Chewy’s veterinary services footprint, adding a sizable clinic base, high-margin potential, and a large member cohort, many of whom represent new customers to the Chewy ecosystem.
He also highlights that Modern Animal’s clinics appear to operate at productivity levels above typical industry benchmarks, with a model that shifts lower-value visits to virtual care to maximize in-clinic economics, which should improve further as tech and marketing investments scale under Chewy’s ownership. In addition, he points to Chewy’s enlarged $750 million share repurchase authorization—roughly 7% of its market value—as a signal of management’s confidence and disciplined capital allocation, reinforcing his positive stance despite uncertainties around deal valuation and timing of earnings contribution.
In another report released today, Wolfe Research also maintained a Buy rating on the stock with a $39.00 price target.