Chewy News: CHWY Stock pops 3% on analyst upgrade

<p>Chewy (NYSE: CHWY) News for Friday on an analyst upgrade has the CHWY stock higher.

Source: design by Jack / Shutterstock.com

The tough news update comes from RBC analyst Mark Mahaney. This causes him to increase the rating of the stock from its previous “Neutral” to a new rating of “Outperform.” The reason for the upgrade is possible benefits in the short term for investors.

According to Mahaney, Chewy will have a good year 2020. That includes growing its online sales business. To agree to this, the company is still moving towards profitability as it gets more of an online presence, reports TheStreet.com.

Despite the upgrade, the tough news today does not include a new price target for CHWY shares. This has the RBC analyst sticking to its $ 38 price target. To be fair, it is still a premium of about 30% above the stock‘s closing price of $ 29.24 on Thursday.

So how does Mark Mahaney’s view of the CHWY stock compare to others? Current ratings for the stock include 10 “buy”, three “holdings” and no “sell”. It has the RBC analyst’s “Outperform” rating that matches well what others who cover the stock think.

It is also worth noting that the CHWY stock has an average price target of $ 36. This means that Mahaney is a little more bullish than the average of other analysts with its price target of $ 38, Bloomberg states.

The CHWY share increased by 2.84% as of Friday afternoon.

At the time of writing, William White had no position in any of the above securities.