Chewy initiated with a Neutral at Seaport Research

Seaport Research initiated coverage of Chewy (CHWY) with a Neutral rating and no price target Chewy operates in a large U.S. pet market, is the “clear vertical ecommerce leader” with a strong brand driven, and has opportunities to capture additional market share through online share shifts and deeper penetration into existing and newer areas including pet healthcare, the analyst tells investors in a research note. However, the firm says U.S. pet growth is “relatively mature and has normalized post pandemic.” Additionally, weakening consumer confidence could potentially pressure spend and be a headwind for new pet adoptions, Seaport contends. It believes the shares are fairly valued at current levels with a fair value of $33.