Why Chewy Stock Sank by 6% on Thursday
(NYSE: CHWY) stock took another hit on Thursday, a day after getting dinged by investors reacting to the company's third-quarter earnings report. While there was no direct news of note from the company, one analyst tracking its shares downgraded his recommendation. The result was that Chewy's share price fell by 6% across the trading session, a notably steeper decline than the S 500 index's 0.2% drop.
Well before market open that day, Exane BNP Paribas' Chris Bottiglieri changed his recommendation on Chewy. It's now a neutral, according to him, where previously he felt it was worthy of an outperform (i.e., buy). His price target currently stands at $30 per share.
It wasn't immediately clear why Bottiglieri made the adjustment, although it hardly seems coincidental that it almost immediately followed that earnings announcement. Although the pet care company managed to grow its revenue and flip to a bottom-line profit, its net income figure came in under the consensus analyst estimate.
Source Fool.com
Chewy Inc Stock
The stock is an absolute favorite of our community with 50 Buy predictions and no Sell predictions.
With a target price of 36 € there is a hugely positive potential of 76.04% for Chewy Inc compared to the current price of 20.45 €.
