Shares of Chewy Inc. CHWY, +4.22% rallied 3.4% in morning trading, after Morgan Stanley analyst Lauren Cassel turned bullish on the pet e-tailer, saying the recent pullback has provided an “attractive entry point” for investors. Since the stock closed at $34.99 on its first day of trading on June 14, the stock had tumbled 35% through Wednesday’s close of $22.89, which was just 4% above the $22 initial public offering price. In comparison, the Renaissance IPO ETF IPO, -0.76% declined 1.3% over the same time and the S&P 500 SPX, -0.08% gained 7.8%. Cassel attributed Chewy’s weakness to concerns over forward revenue, buyer and profit growth, but said “fears are overdone.” She also said investors may be concerns about how recent money-losing IPOs have declined ahead of the expiration of lock-up periods, but said Chewy’s lock-up date is “less of a near-term overhang given the ownership structure,” in which 88% of the company is still owned by private equity and corporate parent PetSmart Inc. The 180-day lock-up period is set to expire next week. Cassel upgraded Chewy’s stock to overweight, as her $30 price target implies a 27% gain from current levels.