Nomura Instinet analyst Mark Kelley upgraded Chewy to Buy from Neutral and raised his price target for the shares to $36 from $32. The stock closed Friday down $1.04 to $26.39. Margin concerns following the company's Q2 results are overblown, Kelly tells investors in a research note titled "Time to Take a Bite." The analyst remains confident that Chewy's core business "continues to perform." Further, Chewy's fulfillment center network is a "distinct barrier to entry for potential new entrants," says the analyst. He views the stock's valuation as more attractive now with limited downside risk.