Citizens JMP has revised its price target for Chewy (CHWY, Financial), reducing it from $40 to $39, while maintaining an "Outperform" rating for the e-commerce company. This adjustment reflects anticipated challenges stemming from recent tariff announcements and changes to the de minimis exception affecting goods from China and Hong Kong. These factors are expected to have varying impacts across the firm's e-commerce sector coverage.
Additionally, the firm has updated its financial forecasts, factoring in a 50% chance of a recession by 2025. Despite these uncertainties, Citizens suggests that Chewy is well-positioned to handle potential economic fluctuations, largely due to its significant revenue streams from consumables and healthcare products. Meanwhile, the firm considers Amazon to be best equipped to navigate the current volatile macroeconomic landscape.
