Why Chewy Stock Is Sliding Today
Shares of the e-commerce pet food and supply company Chewy (NYSE: CHWY) are down by 5.8% as of 10:53 a.m. ET Thursday. The company's shares appear to be moving lower yet again this morning in response to yesterday's downgrade by investing firm Morgan Stanley.
Wednesday, Morgan Stanley analyst Lauren Schenk trimmed her 12-month price target on the stock from $32 to $31 a share. Schenk's current price target implies that Chewy's shares could fall by another 21% from current levels. The company's stock is presently down by 9.85% since this analyst downgrade became public knowledge.
Although Schenk didn't provide much in the way of details in her note yesterday, other analysts covering the stock have raised concerns about the strength of Chewy's discretionary item business in 2023. This segment currently makes up about 20% of the company's annual revenue.
Source Fool.com
