Chewy reinstated with an Underperform at BofA

BofA analyst Curtis Nagle reinstated coverage of Chewy with an Underperform rating and $16 price target. The analyst says weakening pet e-commerce fundamentals are pressuring the company’s revenue growth and margin expansion. This will continue to weigh on Chewy’s valuation, the analyst tells investors in a research note. The firm believes a significant decline in pet adoptions, inflation and trade down activity are impacting pet industry trends.