Chewy price target lowered to $36 from $40 at Goldman Sachs

Goldman Sachs lowered the firm’s price target on Chewy to $36 from $40 and keeps a Buy rating on the shares following a transfer of coverage. The firm sees a continued shift of consumer budgets away from discretionary goods and towards essentials and services, and it expect that the competitive pressure from Asia-based e-commerce platforms that picked-up in 2023 will only intensify in 2024, representing a headwind to growth and margins. Goldman believes that consumers will continue to concentrate their spending with scaled platforms that can offer a wider assortment, sharper pricing and faster shipping times, at the expense of smaller players.