Chewy Inc. (CHWY) PT Lowered to $32 at UBS as Pace of Margin Set to Slow

UBS analyst Michael Lasser lowered the price target on Chewy Inc. (NYSE: CHWY) to $32.00 (from $42.00) while maintaining a Neutral rating.

The analyst commented, "Overall, we think CHWY's 4Q did not do much to change the debate on the stock. The company continues to showcase the consistency of its business. But, it's exhibiting some risks. First, the pace of its gross margin is set to slow. Bigger gains are likely to be harder to come by, especially as the competitive environment remains aggressive in the pet supply sector. Second, the company's guidance points to an acceleration in top-line growth without an obvious drive of the improvement. Thus, it might have created a bit of an overhang that will keep the stock trading around its recent range for the near-term."

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