Deutsche Bank has adjusted its outlook on Chewy (CHWY, Financial), revising the price target from $33 down to $27 while maintaining a Hold rating. The change comes as the firm assesses potential risks associated with tariffs and a slowing growth rate in the sector.
Despite these challenges, Chewy's earnings cuts are anticipated to be less severe compared to Amazon and Wayfair, largely due to the resilience of its product category and its reliance on the domestic U.S. supply chain for most of its consumables. This local supply reliance may buffer Chewy from some international trade pressures.
Analyst Lee Horowitz communicated to investors that current share prices reflect these risks adequately, indicating limited downside potential from the current valuation. As the sector adapts to changing economic conditions, Chewy remains a company to watch in the coming months.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for Chewy Inc (CHWY, Financial) is $39.22 with a high estimate of $47.00 and a low estimate of $27.00. The average target implies an upside of 13.15% from the current price of $34.66. More detailed estimate data can be found on the Chewy Inc (CHWY) Forecast page.
Based on the consensus recommendation from 31 brokerage firms, Chewy Inc's (CHWY, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Chewy Inc (CHWY, Financial) in one year is $39.31, suggesting a upside of 13.42% from the current price of $34.66. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Chewy Inc (CHWY) Summary page.
