Goldman Sees Long-Run Upside, Raises Chewy (CHWY) Target to $52

Chewy, Inc. (NYSE:CHWY) is included among the 13 Best Blue Chip Stocks to Buy Under $50.

On December 11, Goldman Sachs lifted its price target on Chewy, Inc. (NYSE:CHWY) to $52 from $44 and reiterated a Buy rating. The firm said Chewy’s Q3 numbers came in stronger than expected, helped by solid growth in active customers, continued improvement in gross margins, and disciplined spending. Management also indicated that Q4 should look a lot like Q3 and that 2026 will be about building on the company’s competitive strengths and scaling key platform initiatives. Despite questions about near-term consumer spending, Goldman believes the company is set up well for the long run thanks to trends like gaining market share in the pet category, capturing more customer spending, and expanding margins through Chewy+, Autoship, healthcare, advertising, and better fulfillment efficiency.

For the third quarter of 2025, Chewy, Inc. (NYSE:CHWY) reported $3.12 billion in revenue, up 8.3% from a year earlier. Its gross margin improved to 29.8%, which was 50 basis points higher than last year. SG&A expenses for the quarter, excluding stock-based comp and related taxes, totaled $588.6 million or 18.9% of sales. This figure included roughly $2.7 million of one-time costs tied to the company’s pending purchase of SmartEquine.

In October, Chewy, Inc. (NYSE:CHWY) announced a definitive agreement to acquire SmartPak Equine, LLC (SmartEquine) from Covetrus. SmartEquine, which rebranded from SmartPak in mid-2025, is one of the top providers of equine health products in the US. The deal boosts Chewy’s presence in the equine category and helps the company move further into higher-margin health and wellness offerings. With SmartEquine’s premium products and loyal customer base combined with Chewy’s logistics, innovation, and customer support, the company aims to offer a stronger and more complete experience for equine customers nationwide.

Chewy, Inc. (NYSE:CHWY) is a major US online retailer of pet products, offering everything from food and treats to supplies and prescription medications for a wide range of animals.

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