© Reuters. Chewy (CHWY) Pullback Represents an Attractive Entry Point – Oppenheimer
By Sam Boughedda
Oppenheimer initiated coverage of Chewy (NYSE:) with an Outperform rating and $42 price target on Friday.
Shares are now down 70% from all-time highs in February 2021, underperforming a 4% decline in the , said Oppenheimer analysts.
“We believe the recent pullback represents an attractive entry point for longer-term players. Over time, we believe CHWY’s attractive value proposition and expansion into new areas such as healthcare and services should help the company drive share gains and further consolidate pet spend,” wrote the analysts.
In addition, Oppenheimer looks favorably on Chewy’s offering of pet products and services.
“We view a strong balance sheet and the company already being profitable in 1H22, even with significant ongoing investments, as a positive in the current investing and macro backdrop. We expect a volatile trade to continue from here and would take advantage of any potential dips,” the analysts concluded.
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