09:05 AM EDT, 03/21/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our 12-month target at $20, based on a blended valuation (15x FY 25 [Jan.] EBITDA; 0.8x FY 25 EV/sales). We lift our FY 25 EPS to $0.87 from $0.71 and begin FY 26 at $1.05. F4Q (Jan-Q) adj-EBITDA of $86.5M (-6% Y/Y) beat the $62.9M consensus. Revenue of $2,826M (+4% Y/Y) beat by $38M. Net active customers were a disappointing 20.1M (-1.6% Y/Y and -0.9% Q/Q). CHWY's net active customer count peaked two years ago at 20.7M and has been steadily declining since. However, net sales per active customer (NSPAC) once again hit a new all-time high at $555 (+2% Y/Y) compared to $360 prior to the pandemic, driven by aging customer cohorts and CHWY's expansion into new products and services (e.g., Chewy Health). FY 25 guidance was mixed, as a softer-than-expected top line (+4% to +6%, which includes a 2% benefit from a 53rd week) was offset by a better-than-expected bottom line (targeting 3.8% EBITDA margins, up from 3.3% in FY 24). CHWY is beginning to generate meaningful free cash flow and has no long-term debt.