Chewy upgraded to Neutral from Sell at UBS

UBS upgraded Chewy to Neutral from Sell with a price target of $20, down from $25. The analyst believes the stock now largely reflects the company’s potential near-term challenges. While there are still legitimate questions about Chewy’s long-term earnings power, the shares have limited potential downside for at least the short run, the analyst tells investors in a research note. Moreover, the company has demonstrated a consistent trend of positive EBITDA growth since Q1 of 2022, says UBS.