Cowen initiated bullish coverage on the pet e-tailer
Pet product delivery service Chewy Inc (NYSE:CHWY) is moving 3.2% higher to trade at $30.45, buzzing off a fresh bull note out of Cowen. The brokerage initiated coverage with a "buy" rating and price target of $38, a nearly 30% upside to Tuesday's close.
Today's jump puts CHWY on track for its highest close since Sept. 19, and at a comfortable 30% year-to-date gain. The ascending 50-day moving average has moved in as support, capturing the shares' recent pullback below $28.
Coming into today, analyst sentiment was split, with 13 carrying a "buy" or "strong buy" and 11 sporting a "hold" or "sell." This morning's fresh bull note may indicate further unwinding in these bearish bets, which could give the equity an additional boost.
In the options pits, calls are moving at double the average pace today, with 20,000 crossing the tape so far. Most popular are the weekly 11/8 30- and 32-strike calls, with new positions being opened at the latter.
For those looking to move in with options, now looks like an affordable time. This is per the stock's Schaeffer's Volatility Index (SVI) of 50%, which stands in the 6th annual percentile.