Update shared on12 Sep 2025
Fair value Decreased 2.00%Analysts have modestly trimmed Chewy’s price target to $45.45, balancing near-term margin and earnings pressures tied to growth investments against confidence in resilient customer growth, market share gains, and the company’s long-term revenue upside.
Analyst Commentary
- Bullish analysts point to Chewy’s ongoing investments in growth and new categories as building blocks for future market share gains, with several citing these reinvestments as potentially expediting revenue upside in 2026 and beyond.
- The recent stock selloff is viewed by many as overdone, with risk/reward now skewed positively given the company’s resilient customer growth, strong execution, and expectations for improved results in the second half.
- Bearish analysts reference continued margin pressures, slower-than-hoped-for profitability progression, and near-term earnings downside driven by incremental spending, especially from front-loading inventory and increased OpEx.
- Overall confidence in the pet care category’s stability and Chewy’s ability to maintain or grow market share is highlighted, as recurring autoship subscriptions and product innovation like fresh dog food subscriptions strengthen revenue visibility.
- While current EBITDA margin and earnings disappointed some, the majority of analysts assert that strategic reinvestment lays the foundation for Chewy to drive long-term top-line growth and potential margin expansion as investments bear fruit.
What's in the News
- Chewy launched Get Real, a new exclusive line of minimally processed, fresh dog food tailored to meet diverse nutritional needs, expanding its product assortment and addressing surging consumer demand for fresh pet food.
- The company raised its full-year 2025 net sales guidance to $12.5–$12.6 billion, reflecting 7–8% adjusted year-over-year growth, and expects third quarter net sales of $3.07–$3.1 billion with similar growth rates.
- Chewy added premium brands pupp st. (designer dog apparel) and Life is Good (pet and human accessories) to its platform, broadening its lifestyle and product offerings.
- CFO David Reeder resigned, with William Billings named interim CFO; Billings brings extensive accounting and finance leadership experience from major firms.
- Chewy was added to multiple Russell growth and midcap indices, completed a $1 billion follow-on equity offering, announced a $100 million share repurchase program, and implemented a 60-day lockup period for certain Class A and B shares.
Valuation Changes
Summary of Valuation Changes for Chewy
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $46.38 to $45.45.
- The Future P/E for Chewy has fallen from 50.62x to 46.52x.
- The Net Profit Margin for Chewy has risen from 3.09% to 3.26%.
Disclaimer
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