Analyst Bill Kerr from TD Cowen reiterated a Buy rating on Chewy and keeping the price target at $50.00.
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Bill Kerr’s rating is based on Chewy’s expected strong financial performance and growth prospects. The company is projected to report a revenue of $3.09 billion for the second quarter of 2025, reflecting an 8% year-over-year increase, driven by growth in active customers and net sales per active customer. Additionally, Chewy’s gross margin is anticipated to rise to 30.1%, supported by advertising growth, and its EBITDA is expected to increase by 28.5% year-over-year.
Chewy’s stock has shown resilience, with shares up approximately 23% year-to-date, outperforming the S&P 500. Despite a recent decline since the first-quarter earnings report, the stock’s valuation at 18.6 times EV/EBITDA is deemed reasonable, given the company’s projected 20% EBITDA growth CAGR from 2025 to 2030. Chewy is also considered relatively insulated from potential economic challenges such as tariffs or a recession, making it an attractive investment opportunity. Consequently, the price target remains at $50, and the Buy rating is reiterated.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $47.00 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.