Chewy price target lowered to $22 from $25 at JPMorgan

JPMorgan lowered the firm’s price target on Chewy to $22 from $25 and keeps an Overweight rating on the shares. The company’s Q4 results and outlook came in slightly better than feared amid low expectations, the analyst tells investors in a research note. However, the firm says Chewy’s sales trends overall remain lackluster, with margins and free cash flow generation “the bright spots.” While recognizing investor frustration on continued active customer declines, decelerating sales, and growth far from the long-term target of high single digits laid out in December, JPMorgan believes the company’s near-term pressures are mostly macro related. It likes Chewy’s efforts to diversify revenue and focus on growing profits.