0748 ET - Chewy's growth trends have strengthened, but are so established they are fully embedded into expectations, Mizuho analyst David Bellinger says. The pet-products retailer has a stable long-term trajectory, but it is set up to disappoint because its shares are trading at a premium, according to Bellinger. Chewy has outpaced the market, climbing 55% off April lows compared with the S&P 500's 20% gain, Bellinger says. Chewy, which reports Wednesday, has several high hurdles including elevated Street gross margin expectations, the analyst says. "In assessing these risks, we would not be putting new money to work at these levels," he says. Bellinger downgrades the stock to neutral from outperform. Chewy is off 1.3% premarket. (katherine.hamilton@wsj.com)

(END) Dow Jones Newswires

June 09, 2025 07:48 ET (11:48 GMT)

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