JPMorgan Downgrades Chewy Stock Amid Macroeconomic Concerns
On September 11, JPMorgan analyst Doug Anmuth downgraded Chewy (CHWY) stock to 'Neutral' from a previous rating. The downgrade was accompanied by a reduced price target of $24 per share, representing about a 20% upside potential at the time. This move comes as macroeconomic pressures are affecting consumer spending on discretionary and premium pet products like treats and toys, which constitute part of Chewy's offerings. Chewy reported Q2 fiscal earnings with revenue up 7.3% year-over-year to $3.33 billion; however, much of this growth was driven by acquisitions rather than organic sales. Organic growth stood at a more modest 5.7%. Anmuth noted that until consumer sentiment stabilizes, non-essential pet care items will likely continue to face demand constraints. Despite the downgrade, other Wall Street analysts maintain a 'Moderate Buy' consensus rating for Chewy with an average price target of nearly $30 per share, indicating potential upside exceeding 45%.
Topics: Chewy consumer spending JPMorgan pet care stock downgrade