Chewy price target lowered to $50 from $52 at TD Cowen

TD Cowen analyst William Kerr lowered the firm’s price target on Chewy (CHWY) to $50 from $52 and keeps a Buy rating on the shares. The company’s Q1 results beat consensus for both revenue and EBITDA, driven by Active Customer growth and non-GAAP operating leverage, despite a slight gross margin miss, the analyst tells investors in a research note. The firm says the Q2 revenue guide was 2% above consensus, while management reiterated the fiscal 2025 outlook. The stock dropped 11% post earnings, driven by elevated buy-side expectations and the lower than expected gross margin, TD contends. It reduced forecasts but reiterates a Buy rating on Chewy.