Stock Market

Chewy Jumps as We Sprinkle Our Pets With Love By Investing.com

© Reuters

By Christiana Sciaudone

Investing.com —  Chewy (NYSE:)’s up 7% as we thank our mutts for their unconditional love.

Credit Suisse (SIX:) bumped its price target on the online pet supplier to $121 from $104 after hosting investor meetings with the chief executive and financial officers. The firm maintained a buy-equivalent rating on the stock.

Management emphasized accelerated shifts toward online pet spending, more spend per pet and growing pet ownership, according to analyst Eric Wilson Wright, StreetInsider reported.

Chewy reported 40% growth in the third quarter from a year earlier and a 40% increase in new pet profiles for puppies and kittens, which is 1.6 times the historical trend, according to StreetInsider. 

The company sees the status quo as “durable” and representative of “dynamics that were already underway pre-pandemic, such as the shift of pet spending to online,” Credit Suisse said.

“The online penetration of the U.S. pet spending market in 2020 was expected to be 22% of the estimated $99 billion market, but penetration has increased to 27% – 30% of the market over the course of the year, a metric CHWY expects to reach 35%-45% longer-term,” Wilson Wright said, citing information from Packaged Facts. 

Shares are up 220% since the company’s initial public offering in June 2019.

Chewy’s sales soared in 2020, but the company has yet to turn a profit.

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.




Source link

Related Articles

Back to top button