03:07 PM EDT, 03/20/2026 (MT Newswires) -- Chewy (CHWY) shares appear relatively de-risked ahead of its fiscal Q4 results next week, as stable pet category trends and modest growth expectations support investor confidence, RBC Capital Markets said Friday.

The brokerage models' Q4 net sales growth of 0.4% year over year, which is below expectations of 0.5%. RBC expects a moderation in trends due to tough comparatives and the company's ongoing marketing strategy evolution. The firm forecasts roughly 50,000 net customer adds and expects active customers to reach about 21.2 million.

Average net sales per active customer are projected to rise 2.8% year over year to $594, above $592 consensus. Gross margins are expected to expand 70 basis points to 29.2%.

Chewy is expected to guide for fiscal 2026 net sales growth of 7% to 8%. This is slightly above or in line with 7.7% consensus. Growth is expected to be driven by continued market share gains and pricing opportunities. Margin expansion could reach roughly 6.3% to 6.6%.

RBC expects additional operating leverage as reinvestment laps and more volume flow through automated fulfillment centers. The investment firm said with shares down about 28% year to date and underlying trends remaining stable, the stock appears "relatively de-risked" into the print.

RBC has an outperform rating on Chewy with a $43 price target.

Shares of Chewy were down around 3.3% in recent trading.

Price: 23.49, Change: -0.79, Percent Change: -3.25