Bank of America Securities analyst Curtis Nagle maintained a Buy rating on Chewy (CHWY – Research Report) today and set a price target of $49.00.
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Curtis Nagle’s rating is based on Chewy’s strong relative performance in the pet retail industry, which has shown signs of improvement in recent months. The industry data suggests that spending at pet retailers has stabilized, with Chewy benefiting from this trend by gaining market share from traditional offline competitors like PetSmart and Petco.
Chewy’s growth is further supported by the increasing shift of consumer spending to online platforms, where the company has been a significant beneficiary. Nagle anticipates that Chewy’s above-industry revenue growth, combined with solid EBITDA expansion, could lead to strong earnings growth, making it an attractive investment. This outlook, along with the expectation of a return to mid-single digit growth in the pet industry, underpins the Buy rating.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $50.00 price target.