TD Cowen reiterated its Buy rating and $39 price target on Chewy Inc. (NYSE: CHWY), expressing confidence ahead of the company’s fourth-quarter 2025 earnings release.
The firm said it expected Chewy to report fourth-quarter revenue of $3.27 billion, representing a 0.7% year-over-year increase and aligning with consensus estimates as well as the high end of company guidance. Growth was anticipated to be driven by increases in active customers and net sales per active customer (NSPAC).
Gross margin was projected at 29.3%, up from 28.5% in the same period last year, supported by higher advertising revenue, growth in first-party brands, and rising average selling prices.
TD Cowen forecast EBITDA of $158 million, representing a 26.9% year-over-year increase but coming in approximately 2% below consensus expectations. The firm said it anticipated a solid quarterly performance when Chewy reports results on March 25 before market open.
The analyst noted that shares have declined 29% year-to-date, compared with a 4% decline for the S&P 500, and are down approximately 32% since the company reported third-quarter earnings on December 10.
Chewy was said to be trading at around 10.0x enterprise value to EBITDA based on 2026 estimates, which TD Cowen views as attractive given its projected 18% EBITDA compound annual growth rate from 2026 through 2031. The firm also highlighted the company’s relative resilience to potential tariff impacts and recessionary pressures compared with other e-commerce platforms, as well as improving trends in the pet industry.
