Mizuho Securities analyst David Bellinger has maintained their bullish stance on CHWY stock, giving a Buy rating yesterday.
David Bellinger has given his Buy rating due to a combination of factors that suggest a positive outlook for Chewy’s stock. One of the main reasons is the recent shift in the pet food pricing trend, which has moved from a deflationary cycle to a slight inflationary trend. This change is expected to benefit Chewy as broader pet-related spending recovers, and modest price increases are anticipated to continue through 2025.
Additionally, Chewy’s involvement in the chicken feed business, highlighted by their “Chick Days Deals,” could provide a slight boost to their performance, especially as egg prices have surged. The end of the deflationary cycle in pet food pricing, with expectations of modest inflation, supports a favorable long-term sales growth for Chewy. Bellinger applies a valuation multiple to future earnings estimates, resulting in a price target of $42, reinforcing his positive stance on the stock.
Bellinger covers the Consumer Cyclical sector, focusing on stocks such as Tractor Supply, Chewy, and Home Depot. According to TipRanks, Bellinger has an average return of -3.7% and a 52.87% success rate on recommended stocks.
In another report released yesterday, Piper Sandler also maintained a Buy rating on the stock with a $40.00 price target.