Jefferies Reiterates Buy Rating on Chewy Inc. (CHWY)

Jefferies analyst Kaumil Gajrawala reiterated a Buy rating and $25.00 price target on Chewy Inc. (NYSE: CHWY).

The analyst comments "Good start with margin progress (Adj EBITDA 5.7%, +170bp) overshadowing soft topline dynamics (sales +3%, active customers -2%). Importantly, better profitability stems from mix, sponsored ads, and cost control vs. non-cash items; margins +55bp excl. SBC and GM benefits. Unch. F24 sales guide (+4-6%) implies muted demand trends continue, but we view better margin outlook (+40bp at midpoint) and $500m buyback authorization as positives while industry normalizes."

For an analyst ratings summary and ratings history on Chewy Inc. click here. For more ratings news on Chewy Inc. click here.

Shares of Chewy Inc. closed at $16.91 yesterday.

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