Raymond James Sets $28 Target on Chewy After 33% Selloff
Raymond James upgraded Chewy to Outperform with a $28 price target, citing a more attractive risk-reward profile after a 33% post-Q3 selloff and conservative investor expectations. The firm highlighted potential sales growth and margin expansion from 2026, supported by scaling Chewy Vet Clinics and loyal autoship customers.
1. Upgrade Details
Raymond James upgraded Chewy to Outperform with a $28 price target, citing improved risk-reward after the stock fell 33% since its fiscal third-quarter results.
2. Analyst Rationale
The firm noted investor expectations have been reset to more conservative levels, creating an appealing entry point for potential upside based on more modest near-term forecasts.
3. Growth Catalysts
Key drivers include the expansion of Chewy Vet Clinics targeting a $25 billion services segment of the U.S. pet health market and strong loyalty from autoship customers who account for about 83% of revenue.
4. Stock Performance
Chewy shares have been volatile, trading 46.6% below their 52-week high and down 23.1% year-to-date, with the upgrade triggering a 5.8% intraday gain.