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Chewy ‘s entry into the clinical veterinarian market opens the pet-focused retailer to a multibillion-dollar market and can send its shares sharply higher, according to Morgan Stanley. Analyst Nathan Feather named Chewy a top pick, rating it overweight with a $50 price target, implying 15% appreciation from Tuesday’s close. More optimistically, Feather raised his bull case outlook by $7 to $75 per share, citing “upside optionality” tied to the clinic business. In that best-case scenario, Feather sees Chewy rising as much as 73%. “We see the clinic segment as a structural accelerant for the multi-year growth outlook with a high likelihood of success and potential for call option upside,” analysts led by Feather wrote in a 50-page report Tuesday. Clinics add “another growth vector to an already compelling customer growth and margin story.” Chewy opened its first veterinary clinic last year, paving the way to a $40 billion total addressable market, equal to roughly a quarter of the entire market tied to pets. Feather said Chewy has a path to dominate the vet clinic market, given its customer affinity, health capabilities and tech capabilities. He estimated that every 100 clinics would add $50 million in earnings before interest, taxes, depreciation and amortization, or EBITDA, and $500 million to $800 million in enterprise value to Chewy’s business. He also said clinics should see a return of between 2.5 and 5 times on investment. The analyst also touted a “halo effect” from running vet clinics, and said Chewy is likely to rely on mergers and acquisitions to build the clinic business. Chewy shares have surged 30% this year through Tuesday, extending last year’s 42% gain. CHWY YTD mountain Chewy shares in 2025.
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