Chewy upgraded to Buy from Underperform at BofA

BofA analyst Curtis Nagle upgraded Chewy (CHWY) to Buy from Underperform with a price target of $40, up from $24. Shelters are still taking in more pets on a net basis and year-over-year pet spending is negative, but adoption trends have steadily improved since the start of this year and pet spending appears to have bottomed, the analyst tells investors. Easier upcoming comparisons and commentary from the firm’s recent pet expert call make the firm confident that the industry can return to consistent low-to-mid single digit percentage growth, the analyst added.