Chewy upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs analyst Eric Sheridan upgraded Chewy to Buy from Neutral with a price target of $50, up from $39. The analyst sees a more positive risk/reward skew at current levels and is increasingly more positive on Chewy’s ability to maintain 10%-plus sales growth from 2023 to 2027. Chewy has the potential for steady margin expansion over the next five years as it scales private label and healthcare segments at high margins, the analyst tells investors in a research note.