Morgan Stanley sees a “bullish path” to $750M of fiscal 2025 EBITDA for Chewy, or 12% above consensus, following its bottoms-up analysis on each cost line. The firm also sees an increased likelihood of its raised $53 per share “bull case,” which represents 100% upside, with the potential of $800M of fiscal 2025 EBITDA. Profitability upside “makes it easier to underwrite the valuation,” the analyst tells investors in a research note. Morgan Stanley believes Chewy’s forward margin trajectory “remains compelling and underestimated.” Chewy is the firm’s favorite name in SMID-cap name in e-commerce.