Chewy (NYSE:CHWY) is in the news Friday after an analyst upgrade sent CHWY stock heading higher.
Jefferies analyst Stephanie Wissink is behind the positive news for Chewy. The analyst put out a letter this morning that bumped shares of the stock up to a buy rating from a hold rating at the firm.
Wissink also increased the price target for CHWY stock from $59 per share to $100 per share. That means the analyst expects a 54.1% upside to the stock compared to its closing price of $64.88 on Thursday, reports TheFly.
Let’s look at how this compares to other analysts’ take on the stock. The current consensus rating for Chewy is buy with 13 buy ratings and four hold ratings. There are no sell ratings. The consensus price target of $59 per share is well below Wissink’s.
So why exactly is the Jefferies analyst taking such a bullish stance on CHWY stock? In the letter she sent out, Wissink says that the business is gaining traction thanks to Millenials’ focus on online shopping.
Chewy is an e-commerce website that focuses on selling pet products. Along with younger shoppers using it, the novel coronavirus has also been a boon to the stock as more customers shop online due to the pandemic, notes Seeking Alpha.
CHWY stock was up 2.3% as of Friday morning and is up 124.2% since the start of the year.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.