Chewy (CHWY) is on the run.

After bottoming out around $24, the stock is now up to $38.  Now, if it can break above prior resistance around $40, it could see $50, near-term.

One of the top reasons for the move is that it’s recession resistant, says Needham analyst Anna Andreeva.  Helping, the analyst also upgraded the CHWY stock to a buy rating.  “The pet space is defensive (historically outperforms during recessions) and demand is inelastic,” she said, as quoted by Barron’s. “The headwinds from last year across the supply chain and wage/labor pressures are starting to dissipate, with sell-side estimates poised for upside, in our view.”

Barron’s added, “The analyst expects Chewy’s price increases to be resilient and noted how nearly 70% of its revenue is from the autoship business, where customers sign up for regular deliveries of products they need.”

Wedbush analyst Seth Basham also recommended buying the Chewy stock, and has a $35 price target.  “Customer churn should materially improve in FY23 with the largest retention headwinds in the rearview mirror,” Basham said, as quoted by MarketWatch. “Further, we expect gross customer add challenges to ease in 2H22 as competitors adjust their advertising and acquisition strategies, and shoppers seek value in the online channel, keeping [Chewy] customer acquisition costs (CAC) under control.”

Again, from a current price of about $38, we’d like to see CHWY closer to $50 a share.