Chewy price target lowered to $45 from $55 at Needham

Needham analyst Anna Andreeva lowered the firm’s price target on Chewy to $45 from $55 and keeps a Buy rating on the shares. The company’s Q2 results were a “clean beat” but the comments about a more-discerning, newer cohort in July and August with a wider range of outcomes for net ads in the second half of the year puts more pressure on existing cohorts to outperform and supports the bear case that growth is “tapping out”, the analyst tells investors in a research note. The firm adds that it now models flattish net ads in the second half of the year amid greater variance in cohort behavior and lessening visibility.