Chewy upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Lauren Schenk upgraded Chewy to Overweight from Equal Weight with a price target of $28, down from $31. The shares have recently declined over 50% on total addressable market saturation concerns, a move that is overdone as discrete macro headwinds have played an underappreciated role, the analyst tells investors in a research note. The firm sees a sustainable sales growth plus margin expansion story with a valuation that is “finally attractive.”