11:35 AM EDT, 09/11/2025 (MT Newswires) -- Chewy's (CHWY) plans to invest further in H2, including in high-value products like its membership program and private-label consumables such as Get Real, are expected to support earnings and revenue, Deutsche Bank said in a note Thursday.

The planned investments are expected to boost long-term earnings and may lead to revenue growth in late 2025 and 2026, which might not yet be reflected in the company's full-year forecast, the investment firm said.

Despite slow growth in the overall pet sector and flat household formation, Chewy is gaining market share, Deutsche Bank said.

If these strategic investments help Chewy's continued market position expansion, the potential for stronger revenue growth in 2026 and beyond outweighs the downside risks, Deutsche Bank analysts noted.

Deutsche Bank upgraded Chewy to buy from hold with a $45 price target.

Shares of the company were up more than 1% in recent trading.

Price: 35.78, Change: +0.67, Percent Change: +1.91