Chewy price target lowered to $16 from $19 at Piper Sandler

Piper Sandler analyst Peter Keith lowered the firm’s price target on Chewy to $16 from $19 and keeps a Neutral rating on the shares following its 4th semi-annual vet survey. The firm’s survey shows a growing distrust of Chewy amongst the vet community, and a growing preference for Chewy’s vet service competitor, Covetrus. Per the survey results, Piper believes this growing distrust is due to nascent vet awareness of Chewy opening its own vet clinics. Growing distrust from the vet community could limit Chewy’s success in high margin prescription sales.