Chewy downgraded to Neutral from Outperform at Mizuho

Mizuho analyst David Bellinger downgraded Chewy (CHWY) to Neutral from Outperform with a price target of $47, up from $43. The firm remains constructive on the long-term trajectory of Chewy’s business model, but says the current setup into and post the Q1 results is “increasingly less attractive.” As such, the firm downgraded the shares and removed their “Top Pick status.” The shares have run 55% off the April lows as Chewy’s customer and revenue growth trends have strengthened, the analyst tells investors in a research note. However, Mizuho believes these are well-known at this point and fully embedded in expectations. The firm would not be putting new money to work at these levels.