William Blair analyst Dylan Carden has maintained their bullish stance on CHWY stock, giving a Buy rating on September 8.
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Dylan Carden has given his Buy rating due to a combination of factors that highlight Chewy’s promising financial performance and potential for future growth. Despite a slight shortfall in active customer growth compared to buy-side expectations, Chewy reported a healthy 9% revenue growth, surpassing both market and internal forecasts. The company also achieved better-than-expected gross margins and adjusted EBITDA, which were modestly ahead of expectations.
Moreover, Chewy has set its third-quarter sales and earnings projections above expectations and has raised its guidance for the year, indicating confidence in its continued performance. While the sequential deceleration in active customer growth is a concern, the overall growth trajectory appears positive, with year-over-year active customer growth at 4.5% and an increase in spend per customer by 4.6%. Margins, once a point of concern, have become a positive aspect of Chewy’s financials. The analyst anticipates further acceleration in active customer growth, sales, and earnings, particularly moving into 2026, supporting the Buy recommendation.
According to TipRanks, Carden is a 5-star analyst with an average return of 25.8% and a 71.84% success rate. Carden covers the Consumer Cyclical sector, focusing on stocks such as Ulta Beauty, Stitch Fix, and thredUP.
In another report released on September 8, Mizuho Securities also upgraded the stock to a Buy with a $50.00 price target.