Chewy price target lowered to $31 from $45 at Wedbush

Wedbush analyst Seth Basham lowered the firm’s price target on Chewy to $31 from $45 and keeps an Outperform rating on the shares. The firm sees modest downside risk to Q2 results and guidance when the company reports earnings on August 30, but thinks this is largely factored into buyside expectations, the analyst tells investors in a research note. Wedbush says competitor read-throughs and industry data points lean negative, but feels that Chewy’s relative lack of exposure to discretionary products and price-competitive offering that is helping it gain market share limits downside risk.