Goldman Sachs Upgrades Chewy to $52 Target, Citing Long-Term Growth Potential

Goldman Sachs has upgraded Chewy Inc. (CHWY), lifting its price target to $52, marking a notable increase from prior estimates. The firm cited strong underlying fundamentals, including consistent customer retention and expanding market share in the U.S. pet care sector, as key drivers of long-term upside. This revision comes amid a broader reassessment of consumer discretionary stocks with resilient demand patterns. The $52 target implies a premium to current market pricing, suggesting investors should view CHWY as a growth-oriented play within the e-commerce and retail space. Goldman’s analysis highlights Chewy’s expanding subscription model, which contributes over 70% of total sales, as a critical differentiator. The firm also noted improvements in logistics efficiency and inventory management, which are expected to boost gross margins over time. CHWY has reported sequential revenue growth of 7.2% in the last fiscal quarter, exceeding industry averages, while net income turned positive in Q3 2025 after two consecutive quarters of losses. These results, combined with a 25% increase in active customers year-over-year, support Goldman’s optimistic view. Analysts believe the company is well-positioned to leverage data-driven personalization and expand into adjacent product categories such as health and wellness. The upgrade is likely to influence portfolio positioning among institutional and retail investors. Traders may respond with increased buying pressure in the short term, particularly given the record-high price target. The move also signals growing confidence in Chewy’s ability to scale profitably in a competitive e-commerce environment.