Goldman Sees Long-Run Upside, Raises Chewy (CHWY) Target to $52

Chewy, Inc. (NYSE:CHWY) is included among the 13 Best Blue Chip Stocks to Buy Under $50.

On December 11, Goldman Sachs lifted its terms people connected Chewy, Inc. (NYSE:CHWY) to $52 from $44 and reiterated a Buy rating. The steadfast said Chewy’s Q3 numbers came successful stronger than expected, helped by coagulated maturation successful progressive customers, continued betterment successful gross margins, and disciplined spending. Management besides indicated that Q4 should look a batch similar Q3 and that 2026 volition beryllium astir gathering connected the company’s competitory strengths and scaling cardinal level initiatives. Despite questions astir near-term user spending, Goldman believes the institution is acceptable up good for the agelong tally acknowledgment to trends similar gaining marketplace stock successful the favored category, capturing much lawsuit spending, and expanding margins done Chewy+, Autoship, healthcare, advertising, and amended fulfillment efficiency.

For the 3rd 4th of 2025, Chewy, Inc. (NYSE:CHWY) reported $3.12 cardinal successful revenue, up 8.3% from a twelvemonth earlier. Its gross borderline improved to 29.8%, which was 50 ground points higher than past year. SG&A expenses for the quarter, excluding stock-based comp and related taxes, totaled $588.6 cardinal oregon 18.9% of sales. This fig included astir $2.7 cardinal of one-time costs tied to the company’s pending acquisition of SmartEquine.

In October, Chewy, Inc. (NYSE:CHWY) announced a definitive statement to get SmartPak Equine, LLC (SmartEquine) from Covetrus. SmartEquine, which rebranded from SmartPak successful mid-2025, is 1 of the apical providers of equine wellness products successful the US. The woody boosts Chewy’s beingness successful the equine class and helps the institution determination further into higher-margin wellness and wellness offerings. With SmartEquine’s premium products and loyal lawsuit basal combined with Chewy’s logistics, innovation, and lawsuit support, the institution aims to connection a stronger and much implicit acquisition for equine customers nationwide.

Chewy, Inc. (NYSE:CHWY) is simply a large US online retailer of favored products, offering everything from nutrient and treats to supplies and medicine medications for a wide scope of animals.

While we admit the imaginable of CHWY arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 15 Best Stocks to Buy for the Long Term and11 Best Low Priced Dividend Stocks to Buy According to Analysts.

Disclosure: None.