Analyst Nathan Feather of Morgan Stanley maintained a Buy rating on Chewy (CHWY – Research Report), retaining the price target of $40.00.
Nathan Feather has given his Buy rating due to a combination of factors that suggest Chewy’s stock presents a favorable investment opportunity. The recent market-wide downturn has led to a significant selloff in Chewy’s stock, creating an attractive entry point for investors. Despite the current market weakness, Chewy is perceived to offer the best risk-reward profile among small and mid-cap eCommerce companies, particularly due to its high percentage of non-discretionary products and a loyal customer base.
Feather also notes that although the fourth-quarter earnings may not serve as an immediate catalyst due to already high expectations, the company’s potential for growth remains strong. Chewy’s web traffic has shown significant year-over-year growth, and the company is expected to continue its momentum with effective marketing strategies. While there are concerns about elevated expectations for fiscal year 2025 revenue and margin guidance, Feather believes that Chewy’s historical conservatism and potential for expanding its customer base could lead to positive outcomes in the long term.
According to TipRanks, Feather is a 4-star analyst with an average return of 24.9% and an 86.36% success rate. Feather covers the Consumer Cyclical sector, focusing on stocks such as eBay, WW International, and Peloton Interactive.
In another report released on March 12, Mizuho Securities also maintained a Buy rating on the stock with a $42.00 price target.
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