Chewy price target lowered to $46 from $49 at BofA

BofA lowered the firm’s price target on Chewy (CHWY) to $46 from $49 and keeps a Buy rating on the shares. Chewy reported a modest Q2 sales but, though EBITDA margin was inline to below expectations, based on conversations into the print, the analyst tells investors in a research note. While incremental investments around new categories, front-loading inventory, and potentially prices in the second half do limit near-term margin expansion, investments are well-founded to drive share gains and position Chewy for higher margins down the road, the firm says.