Bank of America Securities analyst Curtis Nagle has maintained their bullish stance on CHWY stock, giving a Buy rating on July 10.
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Curtis Nagle’s rating is based on several promising factors for Chewy’s growth potential. The pet health sector, particularly in vet care and pharmaceuticals, is a substantial market valued at $40 billion. Chewy is strategically positioned to benefit from this market, especially as pet adoption trends improve and pets adopted during the COVID-19 pandemic age into their senior years. This demographic shift is expected to drive demand, and Chewy’s expanding veterinary services and leading pharmacy market share are key to capitalizing on these trends.
Chewy’s Vet Care is showing promising early results, with positive reviews and customer acquisition exceeding expectations. If Chewy continues to invest in this area, either through capital expenditure or mergers and acquisitions, there is significant revenue potential. Additionally, Chewy’s pharmacy services, while already the largest in the U.S., have room for growth in market penetration. Increasing customer usage of these services could lead to substantial revenue gains, which the market currently underestimates. Overall, these growth opportunities in vet care and pharmacy contribute to Nagle’s Buy rating for Chewy.
In another report released on July 10, Citizens JMP also maintained a Buy rating on the stock with a $48.00 price target.
Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CHWY in relation to earlier this year.