From Financial Modeling Prep: 2025-01-07 06:10:18

Mizuho’s upgrade and price target boost for Chewy reflects confidence in the company’s growth potential, with a new price target of $42 per share. Key drivers include EBITDA margin expansion, mobile app growth, successful advertising strategies, and growth in retail media and veterinary clinics.

Chewy’s focus on improving cost management, operational efficiency, and mobile app growth opportunities are driving high-single to double-digit EBITDA margin growth. The company’s strategic increase in Q4 ad spending has led to strong performance, with momentum expected to continue through mid-2025.

Mizuho’s report highlights Chewy’s effective execution of growth strategies, particularly in app penetration, advertising, and expansion into veterinary services. The company is expected to see robust revenue and EBITDA growth in 2025, positioning it as a top pick in the consumer internet sector.

Investors comparing Chewy within the consumer internet landscape can consider its growth potential and comparable valuations. Chewy’s focus on diversifying revenue streams through retail media and veterinary clinics, along with its successful growth strategies, make it an attractive investment option.



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