Chewy slips after J.P.Morgan downgrade on challenging industry backdrop
BUZZ-Chewy slips after J.P.Morgan downgrade on challenging industry backdrop ** Chewy shares CHWY.N slip 1.4% premarket to $20.78 after J.P.Morgan downgrades pet retailer to 'neutral' from 'overweight', cuts PT to $24 from $29
** Brokerage cites challenged industry backdrop, muted organic growth
** Says consumer backdrop in Q2 did not meaningfully recover, which could continue to pressure discretionary and premiumization
** Q2 core earnings aided by one-time benefits such as tariff refunds, gift-card breakage, inventory adjustments and vendor-funded merchandising activity - JPM
** Still, co gained market share in Q2 and recent acquisitions outperformed, JPM says, adding that it expects the trend to continue into Q3
** Co reported upbeat Q2 results, raised Q3 rev forecasts earlier this week
** YTD, up to Thursday's close, stock down 36%
(Reporting by Johann M Cherian in Bengaluru)