Chewy initiated with an Outperform at JMP Securities

JMP Securities analyst Nicholas Jones initiated coverage of Chewy with an Outperform rating and $50 price target. The company’s "dominant position" within pet-related retail and services positions it well to capture a "highly impassioned audience that is increasingly humanizing their pets," the analyst tells investors in a research note. The believes this consumer behavior should continue to increase the premiumization of pets, driving consumers to allocate more discretionary spend to those pets longer term. In addition, Chewy’s auto-ship subscription model adds more predictability into future revenue than typically seen in an e-commerce marketplace, it add.