The Analyst Landscape: 5 Takes On Chewy

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In the preceding three months, 5 analysts have released ratings for Chewy CHWY, presenting a wide array of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 4 1 0 0 0
Last 30D 1 0 0 0 0
1M Ago 0 0 0 0 0
2M Ago 1 1 0 0 0
3M Ago 2 0 0 0 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $28.6, a high estimate of $36.00, and a low estimate of $25.00. Marking an increase of 8.62%, the current average surpasses the previous average price target of $26.33.

Interpreting Analyst Ratings: A Closer Look

In examining recent analyst actions, we gain insights into how financial experts perceive Chewy. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Anna Andreeva Needham Maintains Buy $25.00 -
Eric Sheridan Goldman Sachs Lowers Buy $36.00 $40.00
Trevor Young Barclays Raises Overweight $30.00 $19.00
Kaumil Gajrawala Jefferies Announces Buy $27.00 -
Anna Andreeva Needham Raises Buy $25.00 $20.00

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Chewy. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Chewy compared to the broader market.
  • Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Chewy's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Chewy's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Chewy analyst ratings.

Discovering Chewy: A Closer Look

Chewy is the largest e-commerce pet care retailer in the U.S., generating $10.1 billion in 2022 sales across pet food, treats, hard goods, and pharmacy categories. The firm was founded in 2011, acquired by PetSmart in 2017, and tapped public markets as a standalone company in 2019 after spending a couple of years developing under the aegis of the pet superstore chain. The firm generates sales from pet food, treats, over-the-counter medications, medical prescription fulfillment, and hard goods, like crates, leashes, and bowls.

Unraveling the Financial Story of Chewy

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Positive Revenue Trend: Examining Chewy's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 8.15% as of 31 October, 2023, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: Chewy's net margin excels beyond industry benchmarks, reaching -1.31%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -9.45%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -1.23%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Chewy's debt-to-equity ratio is below the industry average. With a ratio of 1.34, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

What Are Analyst Ratings?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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