Chewy assumed with an Overweight at Morgan Stanley

Morgan Stanley assumed coverage of Chewy with an Overweight rating and unchanged price target of $27. Chewy’s earnings “gave something for the bulls and bears,” with better than expected EBITDA margin despite macro headwinds weighing on revenue growth, says the analyst, who expresses increased conviction in the margin story with various levers for upside and the company’s “history of beating” initial guidance.