Why Chewy Shares Are Falling Today

Chewy Inc CHWY is trading lower Monday morning after Wedbush downgraded the stock and lowered its price target.

Wedbush analyst Seth Basham downgraded Chewy from an Outperform rating to a Neutral rating and lowered the price target from $90 to $70.

Basham expects "at best in-line results" for the second half of 2021 and projects Chewy's growth to come in below consensus estimates in 2022. However, the analyst noted that the company is well-positioned to capture market share longer-term.

The Wedbush analyst is calling for disappointing net active customer growth in the second half of 2021.

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Chewy is set to announce its fiscal third-quarter 2021 financial results after the market closes on Dec. 9.

Chewy is the largest e-commerce pet care retailer in the U.S.

CHWY Price Action: Chewy has traded as high as $120 and as low as $60.25 over a 52-week period.

The stock was down 5.09% at $59.45 at time of publication.

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