Barclays Lifts Chewy (CHWY) PT to $50 on Strong FQ1 2026 Outlook
On Wednesday, Barclays analyst Trevor Young raised the price target on Chewy Inc. (NYSE:CHWY) to $50 from $44, while maintaining an Overweight rating on the shares.
This adjustment comes as Barclays anticipates a strong performance from Chewy, with expectations of an FQ1 2026 revenue and EBITDA beat, along with FQ2 guidance that is ahead of estimates.
A close-up shot of a store shelf stocked with pet food and supplies.
However, the FY2026 revenue outlook remains unchanged due to broader macroeconomic uncertainties. Young noted that Chewy's gross margin progression might experience some noisy fluctuations as the company lapses one-time items from the previous year. In FQ4 2025, the company's net sales increased by 14.9% year-over-year to $3.25 billion, which contributed to full-year 2025 net sales of $11.86 billion, which were also up 6.4%.
The company's Autoship program continues to be a significant driver, with sales of $2.62 billion in FQ4, which marked a 21.2% increase, and $9.39 billion for the full year, which grew by 10.6%. Chewy now anticipates its net sales for FY2026 to be between $12.3 and $12.45 billion, which represents a growth of 6% to 7%. The company also plans to open 8 to 10 new vet clinics.
Chewy Inc. (NYSE:CHWY) engages in the e-commerce business in the US for pet food and treats, pet supplies & pet medications, and other pet-health products, as well as pet services.
While we acknowledge the potential of CHWY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CHWY and that has 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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