Analyst Nathan Feather from Morgan Stanley maintained a Buy rating on Chewy and keeping the price target at $48.00.
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Nathan Feather has given his Buy rating due to a combination of factors that highlight Chewy’s strong performance and potential for future growth. Despite initial concerns, Chewy’s third-quarter EBITDA exceeded expectations by 3% to 7%, primarily due to improved marketing efficiency rather than reduced spending. This indicates a sustainable growth model with accelerated customer growth, which Feather finds promising.
Furthermore, while the fourth-quarter margin guidance appears conservative, Feather believes it reflects Chewy’s historical prudence rather than a lack of potential. The company’s confident outlook for fiscal year 2026, with expectations for revenue growth and margin expansion equal to or exceeding 2025 levels, supports a compelling investment thesis. Feather maintains an Overweight rating, with a price target of $48, viewing Chewy as a strong candidate for estimate revisions and potential multiple expansion.
In another report released today, Barclays also maintained a Buy rating on the stock with a $52.00 price target.
CHWY’s price has also changed moderately for the past six months – from $45.790 to $35.370, which is a -22.76% drop .