Chewy price target lowered to $22 from $35 at RBC Capital

RBC Capital lowered the firm’s price target on Chewy to $22 from $35 but keeps an Outperform rating on the shares. The company’s FY24 revenue guidance was below even the tempered post-investor day expectations, though while the stock likely won’t work until the Pet category rebounds, the downside at this point is also “faily limited”, the analyst tells investors in a research note. RBC is also adjusting its valuation methodology as Chewy focuses increasingly on EBITDA expansion, the firm added.