Chewy stock rises on Jefferies price target lift

Shares of Chewy (CHWY) are trading higher after Jefferies raised its price target on the company from $26 to $31, maintaining a Buy rating.

Yahoo Finance Anchors Josh Lipton and Julie Hyman break down the latest developments for Chewy and what they could mean for the company moving forward.

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This post was written by Nicholas Jacobino

Video Transcript

Jeffrey is raising its price target on Chewy from 26 they go up to 31 there and I know analysts signing sponsored ads as a driver.

Uh, so Jeffrey is a fan of Chewy.

Chewy is starting to show signs of scale.

They say with marginal profit dollars flowing through at a higher rate.

They talk about how sponsored ads as a driver.

But operational improvements are also part of the story, Julie.

Well, and what's interesting about that is because of those operational improvements.

Jeffrey says the company can deliver better earnings without an improvement in pet spending trends.

I mean, for a while, you would see Chewy move because of the big pet adoption boom during the pandemic.

Then that started to reverse and Chewy rea to that.

So he's sort of saying it doesn't matter if they're getting more profit out of each.

You know, they call them pet parents on chewing your pet, we're not pet parents.

And that goes on.

He also notes share gains, pet spending.

He, he does argue, listen, they're gonna eventually rebound, offering long term upside balanced risk reward.

He's arguing to his clients at these levels