Chewy's 16% drop seen as overblown; Analysts reaffirm 'buy'
Chewy shares sank 16% after Q2 profit fell 79%, but JP Morgan and Mizuho reaffirmed 'buy' ratings, calling the selloff an overreaction. The retailer raised full-year sales guidance to $12.5-12.6 billion, topping prior forecasts, while margins remain a concern. Analysts have previously raised concerns about the company’s high valuation.