Chewy price target raised to $30 from $25 at Needham

Needham raised the firm’s price target on Chewy to $30 from $25 and keeps a Buy rating on the shares. Chewy is seeing green shoots with new pet ownership for the first time since 2022, while the promo environment in the pet space is seen as “rational,” the analyst tells investors in a post-earnings note. Even with today’s move, the shares are “still inexpensive,” argues the firm, which models 5% sales growth in FY24 and FY25 with adjusted EBITDA margins at 4.4% and 4.6%, respectively.