Chewy price target raised to $42 from $39 at RBC Capital

RBC Capital raised the firm’s price target on Chewy (CHWY) to $42 from $39 and keeps an Outperform rating on the shares after its Q3 results and guidance. The company’s Q4 implied margins were a bit light of investor expectations, but this was primarily due to the management’s decision to opportunistically step-up ad spending to grow active customers, the analyst tells investors in a research note. RBC adds it is raising its FY24 revenue view for Chewy to $11.8B from $11.75B.