The Analyst Verdict: Chewy In The Eyes Of 12 Experts

In the latest quarter, 12 analysts provided ratings for Chewy CHWY, showcasing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 4 7 1 0 0
Last 30D 0 0 0 0 0
1M Ago 1 3 0 0 0
2M Ago 2 4 1 0 0
3M Ago 1 0 0 0 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $38.25, a high estimate of $42.00, and a low estimate of $28.00. This upward trend is apparent, with the current average reflecting a 16.54% increase from the previous average price target of $32.82.

price target chart

Diving into Analyst Ratings: An In-Depth Exploration

The standing of Chewy among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Nicholas Jones JMP Securities Maintains Market Outperform $37.00 $37.00
Doug Anmuth JP Morgan Raises Overweight $38.00 $37.00
Alexandra Steiger Goldman Sachs Raises Buy $40.00 $35.00
Steven Shemesh RBC Capital Raises Outperform $42.00 $39.00
Peter Keith Piper Sandler Raises Overweight $40.00 $35.00
Lauren Schenk Morgan Stanley Raises Overweight $36.00 $33.00
Justin Kleber Baird Raises Outperform $40.00 $35.00
Lee Horowitz Deutsche Bank Raises Hold $28.00 $24.00
Curtis Nagle B of A Securities Raises Buy $40.00 $24.00
Trevor Young Barclays Raises Overweight $40.00 $34.00
Steven Zaccone Citigroup Raises Buy $40.00 $28.00
Bill Kerr TD Cowen Announces Buy $38.00 -

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Chewy. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Chewy compared to the broader market.
  • Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Capture valuable insights into Chewy's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Chewy analyst ratings.

All You Need to Know About Chewy

Chewy is the largest e-commerce petcare retailer in the US, generating $11.2 billion in 2023 sales across pet food, treats, hard goods, and pharmacy categories. The firm was founded in 2011, acquired by PetSmart in 2017, and tapped public markets as a stand-alone company in 2019 after spending a couple of years developing under the aegis of the pet superstore chain. The firm generates sales from pet food, treats, over-the-counter medications, medical prescription fulfillment, and hard goods, like crates, leashes, and bowls.

Breaking Down Chewy's Financial Performance

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Chewy displayed positive results in 3 months. As of 31 October, 2024, the company achieved a solid revenue growth rate of approximately 4.8%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Chewy's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 0.14%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Chewy's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.11%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Chewy's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.13%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Chewy's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.29, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Basics of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.

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