Thursday, February 19: Shares of Chewy Inc. climbed more than 4% in pre-market trading after Raymond James upgraded the stock following a steep sell-off.

The brokerage upgraded Chewy to “outperform” from “market perform,” citing an attractive entry point after the recent correction. Analyst Rick Patel also set a $28 price targetimplying about 16% upside from Wednesday’s closing price.

Chewy’s stock has faced sustained pressure over the past year. Shares have fallen 36% in the last 12 months and are down 27% year-to-date. Patel noted that the stock has dropped 33% since its fiscal third-quarter earnings reportwhile the broader S&P 500 remained largely flat during the same period.

In regular trading, Chewy closed at $24.17up 1.55%. In pre-market trade, the stock rose to around $25.15reflecting a gain of more than 4% as investors reacted positively to the upgrade and valuation reset.