William Blair analyst Dylan Carden has maintained their bullish stance on CHWY stock, giving a Buy rating on October 17.
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.
Dylan Carden has given his Buy rating due to a combination of factors including Chewy’s strategic acquisition of SmartPak Equine, a platform specializing in subscription-based supplements for horses. This acquisition is expected to enhance Chewy’s presence in the equine market, which, although relatively small, involves significant spending per household compared to other pet categories.
Additionally, Chewy’s strong cash position, which is projected to approach $1 billion by year-end, supports its ability to make strategic acquisitions without heavily relying on mergers and acquisitions for growth. The company also reiterated its full-year guidance, which suggests confidence in its financial outlook despite anticipated margin pressures in the third quarter.
In another report released on October 17, Bank of America Securities also maintained a Buy rating on the stock with a $46.00 price target.