Chewy(US:CHWY) The Motley Fool·2025-09-11 22:10Core Viewpoint - Chewy (CHWY) received two analyst upgrades, resulting in a nearly 3% increase in its share price, outperforming the S&P 500's 0.9% rise [1] Analyst Upgrades - Seaport Global Securities's Aaron Kessler upgraded Chewy's recommendation to buy from neutral, setting a price target of $47 per share, which is 30% above the recent closing price [2] - Deutsche Bank's Leo Horowitz also upgraded Chewy to buy from neutral, raising his price target to $45 per share from $38 [6] Financial Performance - Chewy reported a strong year-over-year revenue growth of nearly 9% alongside robust gross margins [4] - Despite the positive financial performance, the market reacted negatively due to increased selling, general, and administrative costs, as well as anticipated higher investments in the second half of the year [5] Strategic Investments - Kessler believes the negative market reaction is unjustified and views the anticipated investments as strategic, which should enhance the company's fundamentals [5] - Horowitz highlighted appealing initiatives such as the Chewy+ Membership program as potential growth drivers for the company [6]