Chewy’s Strong Performance and Growth Potential Amid Challenging Market Conditions

Morgan Stanley analyst Nathan Feather maintained a Buy rating on Chewy (CHWY – Research Report) today and set a price target of $39.00.

Nathan Feather has given his Buy rating due to a combination of factors that highlight Chewy’s strong performance and potential for continued growth. Despite a challenging pet adoption environment, Chewy has shown significant top-line momentum, outperforming the S&P 500 by approximately 30 points within the quarter. This suggests that the market has already anticipated a strong earnings report, which might result in a subdued reaction to the earnings announcement.
Nathan Feather appreciates Chewy’s medium-term growth prospects, especially given its ability to thrive in a stable or weaker macroeconomic environment. The company’s strategic position in the market allows it to avoid major tariff risks while maintaining strong revenue growth and customer acquisition. With Chewy’s consistent customer growth and margin expansion, the analyst sees the potential for the stock to reach a bull case price of $59, reinforcing the Buy recommendation.

In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $49.00 price target.