Chewy Inc (NYSE: CHWY) has been a disappointment for its shareholders in recent weeks but a Barclays analyst says it will come back strongly over the next twelve months.

Trevor Young upgraded the pet food retailer to “overweight” on Thursday and said its shares could climb to $30 – up a whopping 50% from here.

The analyst sees Chewy stock as one with the highest potential for outsized returns within an otherwise challenged eCommerce space in 2024.  

Last month, Chewy reported better-than-expected earnings on a per-share basis for its third financial quarter even though its revenue came in slightly shy of Street estimates.

Trevor Young is convinced that the “dog days are over” for Chewy Inc.

He recommends investing in the pet products company also because “vet clinics and insurance could drive further positive revisions as those businesses scale”.

Chewy stock is currently trading close to its IPO price which makes up for a “good entry point” especially since it’s “largely insulated against competition” from the likes of Temu, the Barclays analyst concluded.

Note that $CHWY does not currently pay a dividend yield. Still, analysts at Goldman Sachs also rated it a “buy” this week. Their $36 price target suggests an even more lucrative upside of 80% from here.

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