US Stock Market News | Chewy drops more than 5% as RBC analyst suggests the stock may be overvalued
On Thursday, Chewy's stock price rose, falling over 5% as of the time of publication, to $25.745. RBC Capital Markets analysts maintained their "outperform" rating on the stock and raised the target price to $32, but noted that Chewy's valuation may be too high. The company reported earnings per share of $0.68 for the second quarter, exceeding the average analyst expectation by $0.66. Revenue increased by 2.6% year-on-year to $2.86 billion, in line with expectations. Although the total number of active customers decreased by 1.8% to 20 million, the net sales per active customer increased by 6.2% to $565, reaching a historical high. Sales from customers on auto-ship orders increased by 5.8% to $2.24 billion
According to the Zhitong Finance and Economics APP, on Thursday, Chewy (CHWY.US) saw its stock price rise, with the stock falling over 5% to $25.745 as of the time of publication. RBC Capital Markets analysts maintained their "outperform" rating on the stock and raised the target price to $32, but noted that Chewy's valuation may be too high.
The company reported earnings per share of $0.68 for the second quarter, beating the average analyst expectation by $0.66. Revenue increased by 2.6% year-on-year to $2.86 billion, in line with expectations. Although the total number of active customers decreased by 1.8% to 20 million, the net sales per active customer increased by 6.2% to $565, reaching a historical high. Sales from customers on auto-ship orders increased by 5.8% to $2.24 billion