Chewy climbs after Mizuho upgrades, hikes PT by 75%

Chewy

06/01/2025 14:26

** Shares of online pet products retailer Chewy  CHWY.N  up 3.7%
at $37.29 before the bell as Mizuho raises rating to
'outperform' from 'neutral'
    ** Brokerage hikes PT from $24 to $42, tied for Wall
Street-high, per LSEG
    ** Mizuho, which calls CHWY its consumer internet 'Top
Pick', says near-term concerns around co's higher advertising
spend are "short-sighted", especially as pet-related spending
rebounds
    ** Recent increase in ad spending was "opportunistic",
Mizuho says, pointing to data that will result in top-line
acceleration with "strong performance" over Black Friday and
December, adding that "benefits should wrap into early-to-mid
2025"
    ** Of 31 brokerages covering CHWY, recommendation breakdown
is now 19 "strong buy", 12 "hold"; median PT of $39 up from $33
on Nov 6
    ** In 2024, CHWY shares rose ~42%

(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))