Chewy (CHWY) stock was upgraded to buy from neutral with a price-target bump to $36 from $32 at Nomura Instinet. 

The target on the Dania Beach, Fla., online retailer of pet food and products implies a 36% hike from its Friday closing price.

The stock was trading up 5% at $27.71 Monday, toward the low end of its 52-week range between $26.29 and $41.34.

Analyst Mark Kelley said concern about the PetSmart subsidiary's profit margins was overstated. Kelley wrote that fulfillment center buildout and public company costs, S&GA as a percent of revenue were in line with second-quarter 2018. Chewy has a "distinct barrier to entry for potential new entrants" as its fulfillment center networks would be difficult to replicate, he wrote.

The 11-analyst FactSet consensus calls for an overweight rating and price target of $36.80. The stock has four buys and six hold ratings, according to FactSet. 

Chewy recently issued full-year fiscal 2020 revenue guidance of $4.75 billion to $4.8 billion, above analysts' estimates of $4.73 billion, according to Bloomberg.