Chewy stock dropped 6% to $19.80 following a JPMorgan downgrade, marking the second analyst cut in two days as investors weigh strong execution against muted organic growth and reliance on one-time margin benefits.
Chewy fell 6% after JPMorgan downgraded to Neutral with a $24 target, marking the second downgrade in two days.
Freshpet rose 2%, confirming the selloff is Chewy-specific and not a pet-sector warning.
Petco slipped just 1%, indicating limited spillover and a Chewy-specific analyst call.
Chewy shares fell 6% on Friday after JPMorgan downgraded the stock to Neutral with a $24 price target, citing concerns over organic growth and one-time items boosting recent earnings. The move follows a similar downgrade from Evercore ISI, pushing the retailer's year-to-date losses to 40%. Despite the selloff, the broader pet sector remains stable, with Freshpet shares rising 2% and Petco slipping only 1%.
Chewy is facing company-specific pressure following back-to-back analyst downgrades from JPMorgan and Evercore ISI, which highlighted concerns over organic growth and the quality of recent earnings beats.