Chewy price target raised to $30 from $28 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Chewy to $30 from $28 and keeps an Overweight rating on the shares. While being “tactically balanced into the print,” as material margin upside is offset by elevated revenue expectations, the firm says in its preview that it sees clear upside opportunity on the EBITDA path and expects “another material beat & raise.” Pet ownership appears to be stable quarter-over-quarter, but not yet inflecting, notes the firm, which continues to expect net adds to return positive in Q3 and raised its FY24 and FY25 EBITDA estimates by 3% and 2%, respectively.