Chewy (CHWY) is heading into fiscal Q1 results with limited EBITDA upside potential amidst softer pet category trends and a more cautious consumer commentary, Oppenheimer said in a Wednesday note.
The firm said it now looks for Q1 adjusted EBITDA of $238 million, below the Street's $241 million estimate, on revenue growth of 7%, versus consensus at 7.6%.
Oppenheimer said it trimmed its forecasts for the core business, excluding the Modern Animal acquisition, to reflect a more cautious stance.
"On the positive side, valuation metrics are now below prior trough levels. On the negative side, we still see an earnings reset, and investors have punished even beats and raises in our coverage lately," the note said.
Chewy will report its Q1 earnings before markets open on June 10.
Oppenheimer maintained its perform rating on Chewy.
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