Chewy Skyrockets Following Jefferies Upgrade to Buy | Financial Buzz

Chewy Skyrockets Following Jefferies Upgrade to Buy

Chewy (NYSE: CHWY), the online pet product seller, was upgraded to “buy” from “hold” by Jefferies. The Investment bank noted its positive perspective on the pet industry, including budding pet adoptions by “digital fluent.” Shares rose 6% amid the news. 

Bought by PetSmart in 2017 for USD3.35 Billion, Chewy has paved the way for online stores selling a variety of pet goods. Chewy made approximately USD5 Billion in revenue last year and maintains its consistent consumer base of animal lovers. 

After raising USD1 Billion for its IPO in 2019, the company now has more than 18,000 workers and 22 locations within the U.S. However, Chewy has had to continuously update its operations, streamline process, team productivity and technology in order to continue its rapid growth. 

Sarah Lawless-Gunn, ServiceNow Platform and Product Owner at Chewy, said “Let’s dive a little into what a digital paw-formation is and what’s that meant to Chewy? So our digital paw-formation journey started with our senior level executives saying it’s time to make a change at Chewy. We need a digital transformation that starts now. So we looked at what are the key components of a digital paw-formation? We can break it down into three main pieces. We have our tools, our processes and our team members. Our team members are always our main focus.”

Additionally, Chewy was ranked number one within the Top 100 Fastest-Growing Retailers. It reported a 37.19% year-over-year sales growth in its first year as a publicly traded company.