William Blair analyst Dylan Carden has maintained their bullish stance on CHWY stock, giving a Buy rating today.
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Dylan Carden has given his Buy rating due to a combination of factors that highlight Chewy’s promising outlook. One of the key reasons is the company’s significant growth in active customers, which has exceeded expectations in recent quarters. This growth is seen as a positive indicator of Chewy’s ability to capture a substantial share of the online market, particularly as the trend of online migration continues to normalize post-pandemic.
Another factor contributing to the Buy rating is the anticipated acceleration in free cash flow and shareholder returns as online migration stabilizes. Despite some concerns about margin pressures, the company is expected to benefit from its marketing and engagement initiatives, which should continue to drive conversion and support margin improvements. Overall, these elements suggest that Chewy is well-positioned to capitalize on the evolving market dynamics, justifying the optimistic outlook and Buy rating.
In another report released today, Robert W. Baird also maintained a Buy rating on the stock with a $52.00 price target.