Chewy price target lowered to $35 from $50 at Oppenheimer

Oppenheimer analyst Rupesh Parikh lowered the firm’s price target on Chewy to $35 from $50 primarily reflecting the recent re-rating in shares, while keeping an Outperform rating on the shares. The firm overall views Chewy’s Q2 results as mixed. On the positive side, sales and adjusted EBITDA topped Street forecasts and management maintained the FY23 outlook even amidst a more difficult retail backdrop lately. On the negative side, net customer adds declined sequentially and commentary suggests greater uncertainty on the ability to return to positive active customer growth in the second half of the year. This has represented a key investor concern in our conversations, which is now likely to persist through at least Q4, Oppenheimer says.