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Chewy Reaffirms 2025 Margin Outlook as Analyst Upgrade and Value Case Gain Traction

The pet e-commerce company says it remains on track for a 10% long-term adjusted EBITDA margin.

Overview

  • Management on Feb. 24 reaffirmed fiscal 2025 adjusted EBITDA margin guidance of 5.6% to 5.7%, citing strong business momentum.
  • The company reiterated it is progressing toward a long-term target of 10% adjusted EBITDA.
  • Raymond James on Feb. 19 upgraded CHWY to Outperform with a $28 price target, pointing to low expectations and potential sales and margin expansion in 2026.
  • Chewy is extending its reach with a Canadian e-commerce launch and U.S. veterinary clinics, while its Autoship service drives a majority of sales and recurring revenue.
  • A March 7 Yahoo Finance analysis noted shares trade around 16 times forward earnings near a three-year low and argued the stock is a reasonably priced long-term buy.