Chewy Inc. (NYSE:CHWY) is one of the 12 best buy-the-dip stocks to invest in now.
On June 3, while maintaining an Outperform rating on the stock, the price target on Chewy Inc. (NYSE:CHWY) was cut down from $50 to $40 by Mizuho
Ahead of Chewy’s results, the firm reduced its projections, claiming that the consensus expectations are still too high and need to be significantly adjusted. Stokkete/ Mizuho also pointed out that management has already drawn attention to declining demand patterns and pressures on pet spending brought on by inflation. According to the firm, the company could possibly lower its guidance to the lower half of its preliminary FY26 guidance range.
Although Chewy still has long-term growth prospects in sectors including advertising, private-label goods, and veterinary services, the firm feels that investors are having difficulty finding short-term catalysts that could spur a comeback in the pet products market. Despite that, Mizuho’s projected price target offers an impressive upside potential in excess of 92%. Back on May 26, Barclays reiterated an Overweight rating for Chewy Inc. (NYSE:CHWY) while reducing the price target from $48 to $40.