Evercore Analyst Reiterates Outperform Rating on Chewy Stock, Sees Long-term Growth Story "Well Intact"

Evercore ISI's top analyst Mark Mahaney reiterated an Outperform rating on Chewy Inc. (CHWY), calling the long-term growth story "well intact." Mahaney sees the US pet industry stabilizing, with Chewy's Autoship model, strong customer satisfaction scores, and potential for gross margin expansion and ad revenue growth as key drivers. The analyst expects EBITDA margins to rise and free cash flow to improve, supporting Chewy's valuation and potential shareholder returns.

Evercore ISI's top analyst, Mark Mahaney, has reiterated an Outperform rating on Chewy Inc. (CHWY), affirming the long-term growth story of the company. Mahaney's optimism is rooted in the stabilization of the US pet industry, which he believes will continue to benefit from Chewy's Autoship model, strong customer satisfaction scores, and potential for gross margin expansion and ad revenue growth [1].

The analyst expects Chewy to see improvements in EBITDA margins and free cash flow, which will support the company's valuation and potential shareholder returns. These expectations align with recent analyst upgrades and target price increases, reflecting a consensus rating of "Moderate Buy" and a consensus price target of $43.78 [1].

Institutional investors have also shown confidence in Chewy's prospects, with several large investors increasing their stakes in the company. For instance, BC Partners PE LP acquired a new stake worth $7.1 billion during the first quarter, while Invesco Ltd. and State Street Corp. significantly increased their positions during the second quarter [1].

Chewy's latest earnings report, which was announced on June 11th, showed strong performance with revenue of $3.12 billion for the quarter, beating analysts' expectations by 6.3% year-over-year. The company reported earnings per share (EPS) of $0.35, surpassing the consensus estimate by $0.01 [1].

References:
[1] https://www.marketbeat.com/instant-alerts/chewy-nysechwy-receives-consensus-rating-of-moderate-buy-from-analysts-2025-08-18/
[2] https://www.marketbeat.com/instant-alerts/filing-chewy-chwy-shares-sold-by-raymond-james-financial-inc-2025-08-22/