Analysts Maintain Bullish Outlook for Chewy Amid Leadership Transition

Chewy Inc US16679L1098

Market experts remain broadly optimistic about Chewy Inc., citing a resilient business model and significant upside potential in its share price. This positive sentiment persists even as the online pet retailer navigates a planned executive departure in its technology division, a move that introduces an element of operational risk.

The core investment thesis for Chewy remains firmly intact, supported by its consistent execution. The company continues to post steady revenue growth exceeding eight percent each quarter, fueled by both higher spending per active customer and successful new customer acquisition. Furthermore, its gross margins are expanding.

A key driver is the successful Autoship subscription service, which ensures predictable recurring revenue from deliveries of pet food and supplies. This model's resilience has attracted increased confidence from institutional investors; Viking Global Investors, for instance, recently augmented its stake. Additional growth levers include the rollout of a paid membership program and the expansion of sponsored advertising.

These operational strengths were evident in the latest quarterly results up to October 2025, which surpassed market estimates. The next official financial report is anticipated in March 2026.

Significant Price Targets Suggest Upside

The analyst community largely upholds favorable ratings on Chewy shares. The consensus price target falls within a range of $45.62 to $47.21. From current trading levels, this implies a potential appreciation of more than 40 percent.

In mid-January, Morgan Stanley reinforced its "Overweight" stance, raising its price objective from $48 to $51. The firm's optimism is rooted in an expected strong year for the internet sector, particularly for companies positioned to benefit from advancements in artificial intelligence.

Similarly, Wolfe Research maintains an "Outperform" recommendation, despite a modest adjustment to its target, which was lowered from $46 to $44.

CTO Departure Presents a Key Hurdle

A notable challenge on the horizon is the impending retirement of Chief Technology Officer Satish Mehta, effective February 6, 2026. The company has initiated a search for his successor. This transition follows a change in the Chief Financial Officer role during 2025, contributing to a period of heightened executive turnover.

Technology is central to Chewy's operations, enabling its efficient logistics network, customer personalization efforts, and the seamless functioning of the Autoship program. Consequently, ensuring a smooth handover in this critical position is paramount for maintaining operational stability.