Why Chewy Stock Is Up 6% Today

The ultimate specialist in pet supplies chew (CHWY 6.03%) was quite the flavorful stock to own on Tuesday. While there was no fresh news of consequence from the company itself, a new research note from an upbeat analyst helped propel the stock higher. They ended the day up 6% in price, easily outpacing the 0.5% increase in price S&P 500 index.

Reiterating a solid buy recommendation

That analyst was Alexandra Steiger of the white-shoe investment bank Goldman Sachs. She reiterated her buy recommendation on Chewy and her $35 per share price target following a conversation with the company’s management. This level is 25% above the stock’s most recent closing price.

In Steiger’s latest note, she wrote that management believes a recent increase in active consumer trends is due to internal initiatives combined with a better environment in the pet care sector overall.

Additionally, Chewy should benefit from continued, albeit modest, growth in active customers. Finally, the analyst added that the focus on health products should help increase net sales per active customer (NSPAC; a crucial metric for the company).

Peers have similar perspectives

The Goldman Sachs forecaster isn’t the only pundit to either reiterate a positive view or become more bullish on Chewy. Last week, her colleague Lauren Schenk de Morgan Stanley published a new note on the company’s outlook, in which she wrote that “forward margin trajectory remains compelling and understated.” According to Schenk, the company could manage to post earnings before interest, taxes, depreciation and amortization (EBITDA) of $750 million throughout 2025.