Why Investors Were Barking for Chewy Stock on Tuesday
The stock of (NYSE: CHWY) finished October in style, with its price rising a sturdy 4% on Tuesday. An analyst upgraded her recommendation on the purveyor of pet products, and that tasty treat sparked a rally in the stock. That 4% rise easily topped the 0.7% advance of the S 500 index on the day.
The person behind the Chewy upgrade was Morgan Stanley's Lauren Schenk. Well before market open, the prognosticator moved her recommendation up one peg, to overweight (i.e., buy) from equal weight (hold). However, she also cut her price target: It now stands at $28 per share, $3 below the previous level.
In Schenk's view, Chewy stock has been oversold lately, a trend that she says is now "overdone." Meanwhile, she wrote, "We see a sustainable topline growth plus margin expansion story with valuation finally attractive at [roughly] 14x [earnings before interest, taxes, depreciation, and amortization]."
Source Fool.com
Chewy Inc Stock
The stock is one of the favorites of our community with 37 Buy predictions and 4 Sell predictions.
With a target price of 27 € there is a slightly positive potential of 7.4% for Chewy Inc compared to the current price of 25.14 €.
