Banks are losing customers, what is the reason?
2022.11.21 12:53
Banks are losing customers, what is the reason?
Budrigannews.com – Chewy’s (NYSE:) was raised by Deutsche Bank prior to its fiscal third-quarter earnings on December 8, the price target was raised to $50 from $40.
Based on their analysis of third-party user data, analysts maintained a Buy rating on the stock and informed investors in a note that they believe active customers have decreased year over year.
“According to our analysis, Active customers decreased y-o-y in F3Q, resulting in revenues closer to the low end of the guidance range (between $2.44 and $2.46 billion).Having said that, “the analysts wrote that CPI data for the pet category increased by 14% y/y in the quarter, up from 10% in the previous quarter, indicating likely strong NSPAC growth for Chewy in the quarter.”
Additionally, given that fuel and freight costs have decreased since the company’s fiscal year ended, they believe gross margins should be biased higher in the near future and into the coming year.
“Thus, we maintain our outlook for gross margin for 2022 and 2023, implying an increase of 35bps and 20bps in y/y margin in 2022 and 2023, respectively.”Additionally, “supporting SG&A leverage,” the analysts went on to say, “our proprietary geolocation data across Chewy’s footprint indicates a swift ramp at Chewy’s growing footprint of automated fulfillment centers with over 100% y/y in the 3Q.”
“In total, we lower our FY23 gross profit estimates by 2 percent to $3.1 billion due to lower revenue estimates. However, we raise our target multiple from 5.4x to 6.9x due to the current favorable environment for more resilient growth equities.”Based on a target FY23e GP multiple of 6.9x EV/GP, compared to’s current revenue multiple of 5.7x, a reasonable comparison in our estimation, our target price is ultimately raised to $50 from $40,” they said.
