CHWY - Chewy: A Recurring Revenue Powerhouse Fueled By Pet Love
2024-04-26 12:22:33 ET
Summary
- US pet spending is expected to grow at a CAGR of 8% from 2023 to 2030 to reach $250 billion.
- I expect Chewy to continue gaining market share in the future with the opening Vet Care clinics which could offer upselling and cross-selling opportunities with new customers.
- Chewy’s largely recurring business model and automation efforts could lead to further cost efficiencies.
- In my opinion, Chewy’s business model and growth prospects justify a premium to industry peers.
- My price target for Chewy is $85 by 2030, representing 455% upside.
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Chewy: A Recurring Revenue Powerhouse Fueled By Pet Love