Needham analyst Bernie McTernan has reiterated their neutral stance on CHWY stock, giving a Hold rating on June 9.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Bernie McTernan has given his Hold rating due to a combination of factors influencing Chewy’s stock performance. Despite a significant drop in the stock price, this decline is largely attributed to the high expectations set when the stock was at its peak post-COVID. While Chewy continues to demonstrate strong execution and share gains, the projections for the second half of the year suggest a conservative outlook, despite the anticipated strong performance in the second quarter.
Moreover, Chewy is well-positioned within the e-commerce sector and is expected to achieve high single-digit growth in the first half of 2025. However, concerns about the stock’s valuation and the uncertain sustainability of its growth trajectory contribute to the decision to maintain a Hold rating at this time.
McTernan covers the Consumer Cyclical sector, focusing on stocks such as Flutter Entertainment PLC, Chewy, and DraftKings. According to TipRanks, McTernan has an average return of 4.7% and a 50.41% success rate on recommended stocks.
In another report released on June 9, Mizuho Securities also downgraded the stock to a Hold with a $47.00 price target.