MoffettNathanson upgrades Chewy to Buy on ‘smart offensive strategy’

As previously reported, MoffettNathanson upgraded Chewy (CHWY) to Buy from Neutral with a $48 price target As pet household formation continues its recovery, the volatility on Chewy’s quarterly customer additions should decrease, says the analyst, who cautions that Chewy’s path forward to the firm’s above-consensus customer additions and adjusted EBITDA in FY26 “will not be linear.” The firm’s unit economic work points to Chewy-plus being a product that’s gross profit dollars additive and margin dilutive and one that the firm considers “a smart offensive strategy,” the analyst added.