Morgan Stanley Bullish About Chewy (CHWY) Prospects in $40B Veterinary Clinic Market
Chewy, Inc. (NYSE:CHWY) is one of the top e-commerce stocks with long-term potential. On June 24, Morgan Stanley reiterated that the company is well-positioned to capitalize on opportunities emerging in the $40 billion US veterinary clinic market.
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According to the investment bank, every new 100 clinics could generate up to $50 million in EBITDA for the company and result in between $500 million and $800 million in enterprise value. Currently, Chewy’s health business generates over $3 billion in sales.
“Vet clinics are a ~$40B total addressable market (TAM) where we believe CHWY has a path to win,” analysts led by Nathan Feather wrote, citing Chewy’s strong brand, large customer base, and established pet health infrastructure.
Morgan Stanley believes Chewy has the potential to scale up to 275 clinics, generating $842 million in revenue and $126 million in EBITDA. The addition of just 100 clinics is expected to generate approximately $290 million in revenue and $126 million in EBITDA.
Chewy, Inc. (NYSE:CHWY) is focused on pet care, offering a wide range of products and services through its website and mobile app. With a catalog of over 110,000 items—including food, toys, pharmaceuticals, and accessories—for pets like dogs, cats, birds, fish, and more, Chewy provides a convenient one-stop solution for pet owners across the U.S.
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Disclosure: None. This article is originally published at Insider Monkey.
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