Citi analyst Steven Zaccone has maintained their bullish stance on CHWY stock, giving a Buy rating on November 21.
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Steven Zaccone has given his Buy rating due to a combination of factors related to Chewy’s current market position and future growth prospects. Despite the recent slowdown in EBITDA growth, Chewy’s fundamentals remain strong, and the company is expected to maintain or potentially increase its fiscal year 2025 guidance. Zaccone’s model anticipates a modest increase in sales growth for fiscal year 2026, positioning Chewy as a market share leader in the pet retail and e-commerce sectors.
While the stock has faced challenges, Zaccone believes that Chewy’s ability to beat market expectations could reignite momentum. The target price has been adjusted to $42, reflecting a valuation based on expected fiscal year 2026 EBITDA. Key factors for future performance include Chewy’s pricing strategy, customer growth, and margin improvements, which are crucial for achieving the company’s long-term goals.
In another report released on November 21, TD Cowen also maintained a Buy rating on the stock with a $48.00 price target.
Based on the recent corporate insider activity of 55 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.