Chewy Inc. (CHWY) PT Lowered to $28 at Citizens on Lowered Estimates

Citizens analyst Andrew Boone lowered the price target on Chewy Inc. (NYSE: CHWY) to $28.00 (from $45.00) while maintaining a Market Outperform rating.

The analyst commented, "Chewy reported revenue of $3.4B, coming in ~30bps above consensus, while EBITDA of $253.1M came in ~$13M above consensus (6% above). However, Chewy lowered full-year guidance by $200M while Modern Animal adds another $70M of inorganic revenue to 2026 as the company highlighted macro headwinds on discretionary pet purchases. More positively, Chewy maintained its 2026 EBITDA guidance margin expectations of 6.7% at the midpoint (6.6%-6.8%), long-term EBITDA margin guidance of ~10%, and for the business to grow at 2x the rate of the industry as the company views competition as stable. With our estimates coming down, we are resetting our valuation on lowered numbers as we are maintaining our Market Outperform rating but reducing our price target to $28 from $45 prior."

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