Chewy initiated with a Peer Perform at Wolfe Research

Wolfe Research initiated coverage of Chewy with a Peer Perform rating and no price target as part of a broader sector note launching coverage of Global Internet names. The firm is positive on the company’s leadership position within the Online Pet category, high visibility business model, and rising diversification of revenue, the analyst tells investors in a research note. Wolfe adds however that Chewy’s ability to accelerate its topline and Active Customer growth to revert net additions to positive growth in the near-to-mid-term, along with its plans to continue to gain market share in the relatively recession resilient pet category, are questionable.