Read Why Needham Is Bullish On This Pet Care Retailer

• Needham analyst Anna Andreeva upgraded Chewy Inc (NYSE:CHWY) to Buy from Hold with a price target of $55, implying a 44% upside.
• The analyst said the company had exceeded expectations in Q1 FY22 after missing consensus EBITDA for four quarters.
• Andreeva thinks the positive momentum continued in Q2 as the pet category was inelastic, with price increases sticking, along with improving supply chain operations and company-specific initiatives driving profitability.
• The analyst noted that the headwinds from last year across the supply chain and wage/labor pressures are starting to dissipate, with sell-side estimates poised for upside.
• Price Action: CHWY shares are trading lower by 0.08% at $38.13 on the last check Monday.
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