Chewy price target raised to $20 from $18 at Mizuho

Mizuho raised the firm’s price target on Chewy to $20 from $18 and keeps a Neutral rating on the shares post the Q1 earnings season. A clear downshift is emerging for the lower-end consumer and deferred purchases of certain categories including auto parts, the analyst tells investors in a research note. The firm says seasonal categories have remained very weak amid an uneven break to spring and the likely somewhat more discretionary nature of consumer buying patterns. Meanwhile, gross margin levels are largely holding firm for larger scale chains, with indications of certain vendor cost claw-backs allowing for flexibility later in the year, adds Mizuho.