Needham analyst Bernie McTernan has reiterated their neutral stance on CHWY stock, giving a Hold rating yesterday.
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Bernie McTernan has given his Hold rating due to a combination of factors surrounding Chewy’s recent performance and future outlook. Despite Chewy’s better-than-expected second-quarter results and an upward revision in guidance, McTernan notes that the significant decline in stock price was influenced by discussions on growth investments, which could involve price adjustments.
Additionally, while investor expectations were high, anticipating a guidance raise, McTernan believes the stock’s valuation was elevated. Although the valuation now appears more reasonable, he seeks further clarity on Chewy’s intentions and requirements for investing in market share growth.
According to TipRanks, McTernan is a 5-star analyst with an average return of 9.9% and a 54.11% success rate. McTernan covers the Consumer Cyclical sector, focusing on stocks such as Super Group (SGHC), Flutter Entertainment PLC, and Chewy.
In another report released yesterday, Exane BNP Paribas also maintained a Hold rating on the stock with a $34.00 price target.