Needham: Chewy stock has another 45% upside from here

Shares of Chewy Inc (NYSE: CHWY) are in focus on Monday after a Needham analyst said the “defensive” name down 35% year-to-date is a “buy”.

Chewy stock has significant upside from here

Anna Andreeva sees upside to $55 a share in Chewy on easing supply constraints and company-specific initiatives aimed at driving profitability. The analyst wrote:

After four quarters of missing consensus EBITDA and three quarters of missing consensus Sales, CHWY beat expectations in 1Q22, and we think the positive momentum continued into 2Q22.

She’s convinced the pet category can weather the ongoing inflationary pressures as pet spending does not depend on state of the economy at large. Interestingly, the NYSE-listed firm has already gained more than 50% since June 1st.

Jim Cramer: Chewy has paid its dues

She said the pet space looks “rational” moving forward and dubbed CHWY “inexpensive” on EV/EBITDA basis. Agreeing to her constructive view on the eCommerce company, famed investor Jim Cramer said this morning on CNBC’s “Squawk on the Street”:

Chewy has made a nice recovery. That last quarter was business as usual. They have not lost customers, it’s impressive. It’s a company that has paid its dues, so to speak. Pets remain something the great disease made it so you have pets.

Earlier this month, the American pet products retailer reported a surprise profit for its fiscal first quarter and gave better-than-expected guidance for the full year.

The post Needham: Chewy stock has another 45% upside from here appeared first on Invezz.

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 All Rights Reserved.

To Top