Chewy reinstated with a Hold at Needham

Needham reinstated coverage of Chewy (CHWY) with a Hold rating and no price target Chewy has had favorable positioning relative to the rest of e-commerce during the recent consumer headwinds, the analyst tells investors in a research note. The firm sees the potential for the relative positioning to “take a step back,” however, and sees the potential for Chewy’s premium multiple to come under relative pressure versus peers. Needham also thinks the company’s vet clinic investment is “intriguing but likely too small to matter at the moment.”