Wedbush upgrades Chewy stock, citing steady demand in 2023
Yahoo Finance Live anchors discuss a Wedbush analyst’s Outperform rating on Chewy stock.
BRIAN SOZZI: All right, Wedbush is throwing Chewy a bone, upgrading the stock from neutral to outperform, citing steady demand for the company in the resilient pet sector. Chewy had a comeback quarter a couple of months ago. So I'm not surprised to see this upgrade. Usually, the pet category does pretty well in a recession. Why? Because you're not going to starve your pet.
JULIE HYMAN: Yeah, the analyst is looking for faster growth here in 2023. I mean, we've been looking at the various pet product retailers, and there is more discretionary stuff for your pets, just like they're-- I mean, like, food is going to do fine. But maybe you buy fewer toys, not as many of those--
BRIAN SOZZI: As, look at that, sweater for puppy.
JULIE HYMAN: --sweet little blankets that are going on in the puppies.
BRIAN SOZZI: Aw, that's so cute.
JULIE HYMAN: But maybe-- I don't know-- maybe that's--
BRAD SMITH: A mouse?
BRIAN SOZZI: Aw.
BRAD SMITH: People are still buying mice out there?
JULIE HYMAN: Sure.
BRIAN SOZZI: They're pets, Brad. They're animals. They deserve love. They deserve hugs.
JULIE HYMAN: My cousin still has pet rats.
BRAD SMITH: Depending upon what kind of snake you own, that might be--
BRIAN SOZZI: I mean, the cat's depending on a little mice.
JULIE HYMAN: Oh.
BRAD SMITH: All right, yeah. Yeah, within this, though, you talk about consumables-- [LAUGHS]
JULIE HYMAN: Aw.
BRAD SMITH: Well, it's tricky. They said that Chewy operates in the resilient pet sector that should continue to benefit from steady demand for consumables in 2022.
BRIAN SOZZI: Some pet agency is coming after you on Twitter, bruh.