Chewy Target Cuts

Analyst coverage has become more cautious. MoffettNathanson downgraded Chewy to neutral, cut its price target to $22 from $50, lowered the fiscal‑2026 revenue estimate to $13.43 billion from $13.63 billion, and trimmed the EPS forecast to $0.86 from $0.92. UBS reduced its target to $24 from $32, maintaining a neutral rating. Deutsche Bank cut its target to $32 from $45, retaining a buy rating. RBC Capital Markets revised its Q2 2026 net‑sales growth estimate to 6.8 % from 8.4 % and trimmed 2026–27 revenue and EBITDA forecasts, citing softer consumer trends, reduced premiumization pressure, and modest cost headwinds; it cut its 2026 target to $34 from $47. Morgan Stanley reduced fiscal 2026 revenue guidance by roughly 215 basis points to an organic growth of 5.1 %–6.3 % from 7.3 %–8.5 %, while maintaining EBITDA‑margin guidance and lowering the price target to $42 from $43. Chewy shares fell 4.7 %–5.1 % in Thursday trading, reflecting the cumulative effect of these downward revisions.