Mizuho Securities analyst David Bellinger has maintained their bullish stance on CHWY stock, giving a Buy rating today.
David Bellinger has given his Buy rating due to a combination of factors that highlight Chewy’s strong performance and potential for future growth. The company demonstrated a significant acceleration in demand during the fourth quarter, with net revenues surpassing expectations and showing a robust increase. This growth is supported by an increase in active customers and effective marketing strategies that have yielded a high return on investment.
Additionally, Bellinger notes that Chewy’s management has taken a cautious approach to future guidance, leaving room for potential upward revisions as the year progresses. The company’s revenue projections for fiscal year 2025 are promising, with expectations of continued growth and minimal impact from inflation or tariffs. Despite some concerns about gross margins, these are attributed to temporary factors, and Chewy’s overall financial health remains strong, justifying the Buy rating and a price target increase to $43.
Based on the recent corporate insider activity of 48 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.