RTTNews | Dec 6, 2021 09:53AM EST

09:53 Monday, December 6, 2021 (RTTNews.com) - Shares of Chewy Inc. (CHWY) slipped over 7% on Monday morning after Wedbush Securities lowered the online pet food retailer's rating to "Neutral" from "Outperform."

"Net active customer growth has disappointed in first half of 2021 and we expect further disappointment in second half driven not only by churn of last year's surge in new customers but also by weaker gross customer additions," said analyst Seth Basham.

The analyst currently expects the stock to drop to $70 from $90 price target.

CHWY is currently trading at $58.25, down $4.44 or 7.08%, on the Nasdaq.

Last Thursday, the company had reported its second-quarter results, with loss narrowing to $16.7 million or $0.04 per share from $32.8 million or $0.08 per share last year. Analysts had expected loss of $0.02 per share in the quarter.

Sales rose to $2.16 billion from $1.69 billion a year ago, but fell short of analysts' average estimate of $2.20 billion for the quarter.

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