01:50 AM EDT, 09/11/2025 (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 raise our 12-month target by $1 to $54, based on a blended valuation of 20x FY 27 (Jan.) EBITDA and 2.0x FY 27 EV/sales. We lift our FY 26 EPS estimate to $1.26 from $1.21 and FY 27 to $1.67 from $1.50. In our view, FQ2 (Jul-Q) results were solid, though the stock is selling off, which we attribute to the absence of a larger profit beat and management's decision to maintain full-year adj-EBITDA margin guidance of 5.4%-5.7%, despite raising the full-year revenue outlook and providing an upbeat FQ3 sales and EPS forecast. We believe the company is executing well, but near-term margin upside is likely capped by reinvestments in fulfillment centers, the Chewy+ subscription program, and potentially consumer pricing. Longer term, we believe CHWY is on the path toward 10%+ adj-EBITDA margins, as we forecast adj-EBITDA margins rising 80 bps in FY 26 to 5.6% and 140 bps in FY 27 to 7.0%. Sales/business mix shift benefits and automation initiatives in fulfillment centers should be key drivers of this progression.