Chewy Shares Rise 6% on Analyst Buy Recommendation

Chewy's stock soared by 6% recently after a bullish report from Goldman Sachs analyst Alexandra Steiger. With a price target raised to $35, Chewy appears set for modest growth, aided by consumer trends and health product focus, making it an attractive investment.

Date: 11-09-2024

AI Rating: 7

Chewy (NYSE: CHWY) has recently seen an uptick in its stock price after a positive report from Goldman Sachs analyst Alexandra Steiger, who reiterated a buy recommendation. This recommendation helped the stock gain 6% on the market, significantly outperforming the S&P 500's increase of 0.5%.

Steiger's analysis suggests that management's initiatives and a general improvement in the pet care sector are propelling growth. The focus on health products is likely to enhance net sales per active customer (NSPAC), which is a critical performance metric for Chewy.

Furthermore, another analyst from Morgan Stanley, Lauren Schenk, provided a similarly optimistic view, indicating that Chewy's forward margin trajectory is compelling and underestimated. She estimates that the company could achieve around $750 million in EBITDA by 2025, showcasing significant earnings potential.

The focus on health products positions Chewy to benefit from an increase in active customers, aiding in its revenue growth. With a consensus of positive projections, investors may find Chewy a viable option in the current market context.

Stocks: CHWY GS