Chewy Inc. (CHWY) PT Lowered to $28 at BNP Paribas Exane

BNP Paribas Exane analyst Chris Bottiglieri lowered the price target on Chewy Inc. (NYSE: CHWY) to $28.00 (from $38.00) while maintaining a Neutral rating.

The analyst commented, "CHWY reported Q4 revenue growth of +0.5% vs. Cons +0.5%, NSPAC of $591 vs. Cons $592 and net customer adds of 172K vs. Cons 183K. Adj. EBITDA margins of 5.0% modestly beat Cons. 4.9%. The company introduced FY26 guidance which contemplates net sales of $13.675B (mdpt.) and adj. EBITDA margins of 6.7% (mdpt.) vs. Cons. 6.5%. CHWY shares +13% vs. S&P +0.5%... Even after today's 13% increase, Chewy shares remain reasonable trading at 11.5x NTM Cons EBITDA or 18.5x Consensus NTM EBITDA (after SBC). However, if GM levers are slowing, with more of the weight on EBITDA margin expansion coming from SG&A leverage, it's likely a bit more challenging to continue to underwrite 8% top-line growth on LSD market growth. We cut CY26 and CY27 estimates by 5% and 3%, respectively, reduce our target multiple to 15.0x BNPP defined Adj. EBITDA (was 22.5x) and remain Neutral."

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