Evercore’s Top Analyst Bullish: Chewy’s Growth Story ’Well Intact’ - CHWY Primed for Rally

Wall Street's pet play just got a fresh dose of adrenaline—Evercore’s lead analyst doubles down on Chewy’s long-term trajectory, calling the growth narrative 'well intact' despite recent market jitters.

Barking Up The Right Tree

Chewy’s subscription model and sticky customer base keep revenues flowing even when the broader retail sector whimpers. Autoship deliveries? Still climbing. Active customers? Holding strong. The numbers don’t lie—even if some analysts still treat pet spending like a discretionary luxury.

E-Commerce With Teeth

No fluffy promises here. Chewy’s logistics network delivers—literally. Fast shipping, smart inventory management, and a brand pet owners actually trust. It’s Amazon for animals, without the existential dread of competing with everything under the sun.

The Bite-Sized Reality

Sure, inflation might have dogs eating cheaper kibble—but Chewy’s playing the long game. Vertical integration, private-label expansion, and telehealth ambitions suggest this isn’t just another pandemic-era story running out of legs. Even if Wall Street remains allergic to patience.

Bottom line: When a top analyst reaffirms conviction, it’s worth a sniff. Even in a market where most wouldn’t know 'fundamental growth' if it bit them on the ankle.

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Mahaney ranks #335 out of 10,000 analysts tracked on TipRanks. He has a 59% success rate and an average return per rating of 14.10%.

Why Evercore Stays Bullish on CHWY Stock

The 5-star analyst pointed out that industry checks, consumer surveys, and company results all show the U.S. pet industry is stabilizing. He sees both cyclical recovery and ongoing online adoption as supportive of Chewy’s growth outlook.

One of Chewy’s key strengths, he said, is its Autoship model, with 80% of sales tied to recurring subscriptions. This gives the company strong economic resilience, even during periods of softer consumer spending. The analyst also pointed to Chewy’s strong customer satisfaction scores, which he believes will help the company add customers more consistently over time.

Looking ahead, Evercore sees more room for gross margin expansion, led by “Pet Health & Private Label products,” and especially advertising revenue. The analyst noted that ad sales have become a big profit driver for other internet platforms like Amazon, Uber, and eBay, and expects Chewy to follow the same path.

On the profitability front, the analyst expects EBITDA margins to rise as marketing spend eases from FY26. The analyst also sees improving free cash FLOW as a key support for valuation and potential shareholder returns.

Is CHWY Stock a Good Buy?

Overall, Wall Street has a Strong Buy consensus rating on Chewy stock based on 17 Buy and six Hold recommendations. The average CHWY stock price target of $47.20 implies about 19% upside potential from current levels.