Consumer

Chewy Shares Could Double on Profit Outlook, Analyst Says

  • The margin trajectory is ‘compelling’ and ‘underestimated’
  • Retailer’s shares have already jumped 50% in past six months
Lock
This article is for subscribers only.

Chewy Inc. shares could surge roughly 100% in the next 12 months as the pet supplies retailer takes measures to improve profitability, according to Morgan Stanley.

Analyst Nathan Feather sees greater probability of Chewy shares reaching his bull-case valuation and lifted his price target for this outcome to $53 from $49 on Friday. Chewy is his top pick among small- and mid-cap e-commerce stocks.