** Shares of online pet products retailer Chewy CHWY.N down 2.7% to $46 premarket
** Brokerage Jefferies downgrades Chewy to "hold" from "buy" due to valuation concerns, with note titled "Valuation Gives Us Paws," citing stock is "primed for a beat and raise" but has limited upside
** Says stock's price is a concern as it's trading at high valuation that's "8 turns higher than March" and above its normal range, making it hard to justify further price increases
** Jefferies says current valuation already assumes beat-and-raise guidance in Q1, which brokerage thinks is "unlikely"
** Pet market is "relatively stable", but spending is only up 3.5% in April, as economic uncertainty affects consumer behavior, limiting co's potential for big gains - brokerage
** However, Jefferies ups CHWY's PT by $2 to $43, which is 9% downside to the stock's Wednesday close
** As of last close, stock up 41.2% YTD
(Reporting by Kamal Choudhury in Bengaluru)
((Kamal.Choudhury@thomsonreuters.com;))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.