UBS reduces Chewy’s price target by $8 citing maturation and macroeconomic pressures despite strong Q1 earnings.
UBS lowered its price target for Chewy (CHWY) to $24 from $32 while maintaining a Neutral rating. The adjustment follows Chewy’s first-quarter results, which showed mixed performance amid broader economic challenges.
Chewy reported net sales of $3.36 billion for the quarter ended May 3, 2026, a 7.7% year-over-year increase. Gross margin expanded by 50 basis points to 30.1%, and net income reached $94.8 million. Adjusted EBITDA rose to $253.1 million, up $60.4 million from the prior year.
UBS analyst Michael Lasser noted Chewy’s business model is increasingly vulnerable to macroeconomic pressures as the company matures. While profitability has improved, the firm cautioned that Chewy may not exceed guidance as consistently as in the past.