BofA Maintains Buy on Chewy, Citing Market Share Gains and Online Pet Retail Strength

Chewy, Inc. (NYSE:CHWY) ranks among the best cyclical stocks to buy now. On June 25, BofA maintained a Buy rating on Chewy, Inc. (NYSE:CHWY) with a $49 price target as the company gains market share in the pet retail industry and remains in a strong position to benefit from the continued trend toward online shopping.

BofA Maintains Buy on Chewy, Citing Market Share Gains and Online Pet Retail Strength

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Spending data from BofA’s combined credit and debit card metrics revealed that US pet retail sales stabilized in May, with year-over-year trends remaining level after declining 4% in the first quarter. The bank claimed that Chewy’s performance was exceptional in comparison to its peers, citing third-party statistics that demonstrated increased traffic and sales in May. While rival Petco saw a 2% decline in revenue, the company’s revenue increased by 8% in the first quarter.

Given that early second-quarter data is exceeding projections, BofA’s 8% growth prediction for Chewy may see some upside. The bank’s sales predictions for Chewy, Inc. (NYSE:CHWY) and its aggregate card data have become closer, indicating a greater fit with reported outcomes.

Chewy, Inc. (NYSE:CHWY) is an American online pet shop that offers services, pharmaceuticals, supplies, and pet food on its website and mobile app.

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Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

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