Chewy price target raised by $5 at Needham, here’s why

Needham analyst Anna Andreeva raised the firm’s price target on Chewy to $25 from $20 and keeps a Buy rating on the shares. The company’s Analyst Day presentation indicated that while FY24 sales could be less than the high-single-digit growth algo, the management still expects margin expansion next year, macro nothwithstanding, the analyst tells investors in a research note. The firm adds that the launch of Chewy Vet Care opens up $25B in Vet services that the company currently doesn’t play in and should drive wallet share capture.