Management Reiterates Outlook for Chewy (CHWY)

Chewy Inc. (NYSE:CHWY) is one of the 10 best retail stocks with huge upside potential. On February 24, Chewy Inc. (NYSE:CHWY) reaffirmed its FY25 adjusted EBITDA margin guidance of 5.6%-5.7%, emphasizing strong business momentum. The company remains on track towards its long-term adjusted EBITDA target of 10%, stating:

“As discussed on our December 10, 2025 earnings call, Chewy’s (CHWY) long-term plan remains intact, our business momentum remains strong, and we remain firmly on track toward the long-term margin profile of 10% Adjusted EBITDA that we outlined at Investor Day. As such, we are reaffirming our guidance for fiscal year 2025 and look forward to a successful fiscal year 2026.”

On February 19, Raymond James upgraded the rating on Chewy Inc. (NYSE:CHWY) from Market Perform to Outperform. The firm estimated a $28 price target, offering almost 10% upside at the current level.

The firm identifies an attractive risk/reward profile following a 33% decline in share price following the third-quarter report. It highlighted a favorable setup driven by low market expectations, and the company’s sales and margin expansion opportunities projected for 2026.

Chewy Inc. (NYSE:CHWY) is an e-commerce retail business that focuses on pet-health products and services. It offers supplies, medications, treats, and food for pets through a popular “Autoship” service, which generates 70% of business revenues. It offers products from over 3,500 brands through a high-volume automated distribution network.