Chewy Inc (NYSE:CHWY) shares were down Thursday after the company reported downbeat third-quarter sales.

The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.

RBC Capital Markets On Chewy

Analyst Steven Shemesh maintained an Outperform rating while raising the price target from $39 to $42.

Chewy’s active customer count grew sequentially for the second consecutive quarter, with net adds of around 160,000, Shemesh said in a note. Autoship rose to a new record, reaching 80% of net sales in the quarter, he added.

The company’s fourth-quarter guidance implies slightly softer-than-expected margins, but this is mainly due to management’s decision to “opportunistically step-up ad spend to grow active customers,” the analyst stated. “We walk away from the quarter with higher conviction in a top-line recovery and the margin outlook largely unchanged,” he further wrote.

Check out other …

Full story available on Benzinga.com