Chewy (NYSE:CHWY) news for Friday concerning an analyst upgrade has CHWY stock heading higher.
The Chewy news update comes from RBC analyst Mark Mahaney. This has him increasing the rating for the stock from its previous “Neutral” to a new rating of “Outperform.” The reason behind the upgrade is possible near-term benefits for investors.
According to Mahaney, Chewy is set to have a good year in 2020. That includes growing its business of online sales. To go along with this, the company is still moving toward profitability as it gains more of an online presence, reports TheStreet.com.
Despite the upgrade, the Chewy news today doesn’t include a new price target for CHWY stock. This has the RBC analyst sticking with his price target of $38. To be fair, that is still a roughly 30% premium over the stock’s closing price of $29.24 on Thursday.
So how does Mark Mahaney’s outlook on CHWY stock compare to others? The current ratings for the stock include 10 “Buys”, three “Holds” and no “Sells.” That has the RBC analyst’s “Outperform” rating matching up well with what others covering the stock think.
It’s also worth pointing out that CHWY stock has an average price target of $36. This means that Mahaney’s a little more bullish than the average of other analysts with his $38 price target, Bloomberg notes.
CHWY stock was up 2.84% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
