Needham analyst Bernie McTernan has maintained their neutral stance on CHWY stock, giving a Hold rating on March 24.
Bernie McTernan’s rating is based on a combination of factors that reflect both optimism and caution. Chewy’s recent quarterly results exceeded expectations, and the company has provided a strong outlook for 2025, leading to upward revisions in revenue and adjusted EBITDA estimates. The company’s efforts in enhancing supply, customer experience, and marketing are beginning to show positive results, with an increase in net customer additions.
Despite these positive developments, McTernan maintains a Hold rating due to the stock’s current valuation, which already factors in the company’s strong performance and growth potential. While Chewy is expected to continue its growth trajectory, the premium multiple that the stock commands suggests limited immediate upside potential. Therefore, the Hold rating reflects a balanced view, acknowledging the company’s strengths while considering the valuation constraints.
According to TipRanks, McTernan is a 4-star analyst with an average return of 2.6% and a 47.07% success rate. McTernan covers the Consumer Cyclical sector, focusing on stocks such as DraftKings, thredUP, and Rush Street Interactive.