Chewy downgraded to Perform on challenging backdrop at Oppenheimer

Oppenheimer downgraded Chewy to Perform from Outperform without a price target. The analyst expects a more challenging backdrop for Chewy to persist for at least a few more quarters, amid recent signs of weakness in the historically resilient pet food category and the potential for more muted inflation benefits in fiscal 2024. In addition, the current higher interest rate backdrop represents another pressure point for shares, the analyst tells investors in a research note. The firm has a favorable view of Chewy’s longer-term prospects, but awaits definitive signs of progress on net additions and a potential reset of Street numbers.