Chewy Inc (NYSE:CHWY) stock dropped during Tuesday's trading session, hitting a new 52-week low of roughly $19.74. The sharp intraday decline occurred on no significant new corporate news, given the pet e-commerce retailer's recent stable financial reports.



The Nasdaq is down 0.04% while the S&amp;P 500 has shed 0.21%.



<h2>Citigroup Slashed Price Forecast</h2>



The downward movement follows recent cautious adjustments from Wall Street. On May 12, Citigroup maintained its buy rating on Chewy but lowered its price forecast to $37.



<h2>Analysts Highlight Long-Term AI Efficiencies</h2>



Despite the negative price action, prior analyst notes focused heavily on Chewy's operational improvements, following Chewy's upbeat fourth-quarter report.



Guggenheim Securities analyst Steven Forbes reiterated a buy rating and a $45 price target. Forbes pointed to automated cost savings, noting,



&#34;We see the potential for 30-40 basis points of fulfillment cost leverage in 2026.&#34; He added that management indicated AI-related efficiency benefits of &#34;low tens of millions of dollars&#34; during 2026, &#34;setting the stage for significant G&amp;A expense leverage.&#34;



<h2>Autoship Metrics Provide Revenue Stability</h2>



Needham analyst Bernie McTernan reaffirmed a hold rating in late March, emphasizing that fourth-quarter revenues reflected the &#34;stability and durability&#34; of the business.



McTernan focused on Chewy's reliable customer base, stating that Autoship strength, &#34;now representing 84% of sales, continues to drive predictable, recurring demand.&#34;



He also noted that &#34;CHWY is among the first in our coverage to quantify the efficiency gains from AI,&#34; specifically across customer service, fulfillment, pharmacy and marketing.



<h2>Critical Levels To Watch for Chewy Stock</h2>



Chewy's chart remains technically heavy: the stock is trading 18.1% below its 20-day SMA ($24.30) and 37.6% below its 200-day SMA ($31.89), keeping the primary trend pointed down.



The 20-day SMA below the 50-day SMA is bearish, and the death cross (50-day below 200-day) that formed in November 2025 reinforces that sellers have controlled the bigger picture.



The stock is also trading below its prior 52-week low ($21.03), which can turn that former floor into overhead supply if the price tries to bounce back into that zone.



Over the past 12 months, shares have been down 54.03%, so rallies tend to face profit-taking quickly unless the stock can start reclaiming key moving averages.



<ul>
<li>Key Resistance: $21.03</li>



<li>Key Support: $19.90</li>
</ul>



CHWY Price Action: Chewy shares were down 8.55% at $19.77 at the time of publication on Tuesday. The stock is trading at a new 52-week low, according to Benzinga Pro data.



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Chewy Inc. (NYSE: CHWY) stock fell to a 52-week low of $19.74 on Tuesday, driven by cautious adjustments from Citigroup, which lowered its price forecast to $37. Despite this, analysts highlight long-term operational improvements and AI efficiencies. Chewy's Autoship program, representing 84% of sales, provides revenue stability. The stock is currently trading significantly below key moving averages, indicating a bearish trend, with shares down 54.03% over the past year.

Chewy Stock Is Hit New 52-Week Low On Tuesday - Here's Why