Chewy and Peloton: Analysts Predict Significant Stock Upside

Analysts predict a promising upside for Chewy and Peloton stocks, with potential gains of 49% and 128%, respectively. Improvement in financial results could attract investor interest amidst a challenging market landscape.

Date: 22-03-2025

AI Rating: 6

Stock Performance Overview
Chewy and Peloton Interactive are positioned to potentially rebound with expectations of improving financial results, as analysts forecast significant upside for both stocks.

Chewy Analysis
Chewy has shown stability in sales growth at 5% year-over-year. Analysts have upgraded their ratings, indicating a potential upside of 49% with a $47 price target. The company is expected to improve profit margins through its higher-margin offerings, which could bolster net income. Additionally, free cash flow is projected to double over the next three years, presenting a strong incentive for investors. However, potential risks, such as tariffs impacting suppliers from China, may pose challenges to achieving this potential ahead of analyst expectations.

Peloton Analysis
Poleton Interactive’s situation mirrors some of the aspects seen in Chewy, with a strong uptick in growth metrics. The stock sees an upside of 128% based on a current price target of $15. Notably, Peloton reported a staggering 385% year-over-year increase in free cash flow. However, membership declines raise concerns about future revenue growth and long-term viability, making it harder to create sustainable shareholder value.

Stocks: CHWY PTON