Analysts Slash Chewy Price Targets After Outlook Cut to $13.4B–$13.55B
CHWY•Chewy reported Q1 net sales of $3.36 billion and adjusted EPS of $0.43, matching estimates, but trimmed its FY26 revenue outlook to $13.4 billion–$13.55 billion. Morgan Stanley, Bank of America, and Piper Sandler cut price targets to $42, $31, and $30 respectively while MoffettNathanson downgraded to neutral despite retention above 100%.
1. Mixed Analyst Reactions
Morgan Stanley maintained an Overweight rating but cut its price target from $43 to $42. Bank of America trimmed its target to $31 while retaining Buy, Piper Sandler slashed its target to $30 and MoffettNathanson downgraded to Neutral despite Raymond James continuing a Buy at $25.
2. Q1 Performance and Outlook
Chewy delivered Q1 net sales of $3.36 billion and adjusted EPS of $0.43, both matching consensus. The company narrowed its full-year revenue guidance to $13.4 billion–$13.55 billion from $13.6 billion–$13.75 billion and sees Q2 revenue of $3.3 billion–$3.33 billion with $0.36 EPS.
3. Customer Growth and Macro Challenges
Management highlighted active customer growth and net revenue retention above 100%, signaling potential for revenue acceleration when pet spending recovers. However, analysts pointed to a weak pet macro environment as a near-term headwind to growth and margins.
