KeyBanc A Long-Term Believer
Investments in data scientists and the U.K. will drive some near-term profit and loss pressure, but KeyBanc Capital Markets is confident it will drive sustainable long-term growth, analyst Edward Yruma said in a Tuesday note.
The company’s Direct Buy feature presents a compelling growth opportunity, the analyst said.
“After introducing Extras last year, Stitch Fix continued to expand its flexibility and introduced new direct-buy functionality during the quarter, allowing customers to purchase items directly from Stitch Fix’s website separate from a normal fix.”
KeyBanc maintained an Overweight rating on Stitch Fix and lowered the price target from $40 to $34.
Wells Fargo Cuts $10 From Price Target
Stitch Fix’s fourth-quarter results were somewhat disappointing, Wells Fargo analyst Ike Boruchow said in a Tuesday note.
“While we commend Stitch Fix’s ability to successfully grow top-line while continuing to outpace overall market growth, we remain cautious near-term,” the analyst said.
Wells Fargo maintained a Market Perform rating and lowered the price target from $30 to $20.
SunTrust analyst Youssef Squali remains bullish on Stitch Fix after the print.
Although higher investments in tech will delay EBITDA margin expansion, it should not be construed as a sign of an unsustainable business model, the analyst said.
SunTrust maintained a Buy rating and lowered the price target from $44 to $36.
Stitch Fix shares were down 10.62% at $17.96 at the time of publication.
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Photo courtesy of Stitch Fix.
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