J.P. Morgan analyst Doug Anmuth has reiterated their bullish stance on CHWY stock, giving a Buy rating yesterday.
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Doug Anmuth has given his Buy rating due to a combination of factors including Chewy’s strategic investments in growth initiatives and market share gains. Despite a recent pullback in the stock price, Anmuth believes that the company’s efforts to enhance product offerings and marketing are positioning it well for future growth. Chewy’s ability to add active customers and deepen its share of wallet through initiatives like Autoship and Chewy+ is seen as a positive driver for net sales per active customer growth.
Furthermore, Chewy’s expansion into new areas such as fresh private-label dog food subscriptions and veterinary clinics is expected to drive additional revenue and market share gains. The company’s focus on non-discretionary goods and its Autoship program provide a defensive position against macroeconomic uncertainties. Anmuth projects improvements in gross and adjusted EBITDA margins, supported by a multi-year profitability ramp, leading to a reiterated Overweight rating and a price target of $45 by December 2026.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $46.00 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.