From Yahoo Finance: 2025-06-05 20:47:00

Jefferies downgraded Chewy, Inc. (CHWY) to Hold, citing valuation concerns, despite raising the price target to $43. The stock has surged 41% year-to-date. Analysts question Chewy’s ability to beat Street estimates in upcoming Q1 results, noting gains from sponsored ads and data-driven insights. The current share price may limit potential gains.

The downgrade was due to Chewy’s valuation, with limited scope for price appreciation. Jefferies maintains a conservative stance on the company’s future performance. Chewy is an online pet retailer selling food, supplies, medications, and services. While CHWY has investment potential, some AI stocks may offer higher returns with limited downside risk.

For more information on AI stocks and other investment opportunities, check out our free report on the best short-term AI stock. Explore the 10 Best Debt Free IT Penny Stocks To Buy and 10 Unstoppable Stocks That Could Double Your Money for additional investment insights.

Read more: Jefferies Downgrades Chewy (CHWY) to Hold, Flags Valuation Concerns