TD Cowen analyst Bill Kerr has reiterated their bullish stance on CHWY stock, giving a Buy rating today.
Bill Kerr has given his Buy rating due to a combination of factors that highlight Chewy’s strong financial performance and growth potential. The company’s fourth-quarter results exceeded expectations in both revenue and EBITDA, primarily driven by a higher number of active customers and effective cost management, which compensated for only modest gains in gross margin. Chewy’s revenue for the quarter was significantly boosted by robust sales from its Autoship customers, which saw a notable year-over-year increase.
Additionally, Chewy demonstrated growth across all its product categories, with particularly strong performance in its Other revenue and Hardgoods sales. The company’s EBITDA for the quarter also surpassed estimates, reflecting improved operational efficiencies. Looking ahead, Chewy’s guidance for the first quarter and fiscal year 2025 suggests continued revenue growth, supported by an increase in active customers and strategic initiatives. These positive indicators contribute to Kerr’s confidence in Chewy’s stock, justifying the Buy rating.
According to TipRanks, Kerr is ranked #5906 out of 9407 analysts.