CHWY Faces Mixed Analyst Calls After Earnings — Multiple Price Target Cuts Follow

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In Q1, the company reported net sales of $3.36 billion, up 7.7%, and adjusted earnings per share of $0.43, both in line with consensus estimates.

  • Morgan Stanley maintained an ‘Overweight’ rating but lowered its target.
  • Bank of America kept a ‘Buy’ rating despite trimming its target, still viewing Chewy as a durable long-term grower.
  • Piper Sandler sharply reduced its price target and keeps an ‘Overweight’ rating.

Chewy Inc (CHWY) is seeing a split in analyst sentiment following its first-quarter results and lower-than-expected full-year sales outlook. While one firm has downgraded the stock, citing a less clear bullish outlook, others continue to see long-term value despite trimming price targets and adjusting growth expectations.

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At the time of writing, CHWY stock was down 0.35% in after-hours trading, after ending the regular session with a decline of over 2%. 

Price Targets Adjusted Across Firms

  • Morgan Stanley lowered its price target on Chewy to $42 from $43 while maintaining an ‘Overweight’ rating. The firm said in a research note that the company cut its FY26 revenue guidance due to a weak pet macro environment, while still holding margins steady, according to TheFly. It added that active customer growth remains strong, and with net revenue retention above 100%, this could support accelerating revenue growth when macro conditions improve.
  • Bank of America lowered its price target on Chewy to $31 from $33 while maintaining a ‘Buy’ rating. The firm said skepticism around category commentary likely weighed on the stock, but still views Chewy as a durable long-term grower even in a softer consumer environment, according to TheFly.
  • Piper Sandler also cut its price target sharply to $30 from $48 while keeping an ‘Overweight’ rating. 
  • MoffettNathanson downgraded Chewy to ‘Neutral’ from ‘Buy.’ The analyst stated in a research note that the firm can no longer confidently maintain a bullish thesis on the stock with clear upside potential, according to TheFly.
  • Raymond James, meanwhile, said it was disappointed with the deceleration but believes the risk-reward remains favorable. The firm reiterated a ‘Buy’ rating on Chewy with a $25 price target 

CHWY Q1 Results and Outlook

For the first quarter, Chewy reported net sales of $3.36 billion and adjusted earnings per share of $0.43, both in line with estimates, according to Fiscal.ai. The company cut its full-year sales outlook to a range of $13.4 billion to $13.55 billion, down from $13.6 billion to $13.75 billion. For the second quarter, Chewy expects adjusted earnings per share of $0.36 and revenue in the range of $3.3 billion to $3.33 billion. 

CHWY Stock: What Retail Says

On Stocktwits, retail sentiment around CHWY stock turned to ‘bullish’ from ‘neutral’ a day ago, while message volume was ‘extremely high.’ In the past seven days, the message volume rose more than 95%.

Over the past seven days, message volume around the stock has surged by 1,025%, while its retail watcher base rose 0.2% in the same period.

In the past 12 months, CHWY stock has fallen 58%. 

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