Morgan Stanley reportedly expects the firm to deliver a strong earnings before interest, tax, depreciation, and amortization (EBITDA) margin and hike its guidance during the second-quarter earnings scheduled to be announced before the bell on Wednesday.

Analysts now expect Chewy to report revenue of $2.86 billion and EBITDA of $112.53 million during the second quarter. Photo via Unsplash

Bhavik Nair·Stocktwits

Updated Jul 02, 2025 | 8:31 PM GMT-04

Add us on

Morgan Stanley has reportedly raised the price target on Chewy to $30 from $28 while maintaining an ‘Overweight’ rating on the stock.

The brokerage reportedly expects the pet food company to deliver a strong earnings before interest, tax, depreciation, and amortization (EBITDA) margin and hike its guidance during the second-quarter results scheduled to be announced before the bell on Wednesday. The stock, however, declined over 3% on Monday.

Following the development, retail sentiment on Stocktwits shifted into ‘bullish’ territory (55/100) from ‘neutral’ zone a day ago.

Chewy retail sentiment as of 10:33 a.m. ET on August 26, 2024

Retail followers of Chewy on Stocktwits expressed enthusiasm as well, believing the firm will beat analyst estimates in its upcoming earnings.

Some users, albeit bullish, are maintaining a more cautious approach toward the stock. For instance, one user named ‘Crazybirdguy’ noted they don’t expect any real push until the third-quarter earnings but said it's a long-term holding.

The stock made headlines last month after Keith Gill a.k.a ‘Roaring Kitty’ disclosed a stake in the firm. From a performance point of view, the stock has had a decent year, having gained over 16% on a year-to-date basis. However, much of the gains were recorded after the firm’s strong first-quarter results.

Chewy’s net income almost tripled to $66.90 million during the first quarter versus the same period a year ago. It delivered a record EBITDA of $162.92 million, up 47% year-over-year (YoY).

Notably, in June, the company announced it will repurchase an aggregate of 17.55 million shares of its Class A common stock at a price per share of $28.49 resulting in an aggregate repurchase price of approximately $500 million from Buddy Chester Sub LLC. The entity is affiliated with funds advised by BC Partners Advisors, Chewy’s largest shareholder.

Analysts now expect the firm to report revenue of $2.86 billion and EBITDA of $112.53 million during the second quarter. Earnings per share is estimated to come in at $0.21.

Going forward, a lot will depend on whether the firm manages to meet Wall Street expectations. The stock is currently trading above the 200-day moving average but faces resistance at the $28 mark.

Also See:

Southwest Airlines Stock Faces Scrutiny As Elliott Pushes For New Leadership, Board Oversight