Why Chewy Was Such a Tasty Stock This Week
We should never underestimate the power of an analyst's take to move the price of a stock. Case in point: pet comestibles specialist Chewy (NYSE: CHWY), which according to data compiled by S&P Global Market Intelligence shot 33% higher in trading this week.
On Tuesday, Wedbush prognosticator Seth Basham upgraded his recommendation on Chewy to outperform (buy) from the previous neutral. In doing so, Basham also upped his price target on the stock to $35; it was previously $30.
The analyst says that Chewy, which had lost more than 50% of its value year to date, is primed for a rebound on what he terms "relatively favorable" dynamics in the pet food market. He also says that e-commerce in general should start to tick up, and the stock's valuations are now very appealingly low.
Source Fool.com
