U.S. Markets closed

Stitch Fix Analysts Trim Price Targets After Q4 Print

Brett Hershman

Stitch Fix Inc (NASDAQ: SFIX) shares were plummeting Wednesday after the online styling service delivered a fourth-quarter sales miss.

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 Bullish

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.

Price Action 

Stitch Fix shares were down 10.62% at $17.96 at the time of publication. 

Related Links:

Why Stitch Fix Uses Artificial Intelligence To Understand Consumer Habits

The Future Of Retail? Innovative Alternatives To Traditional Shopping

Photo courtesy of Stitch Fix. 

Latest Ratings for SFIX

Date Firm Action From To
Oct 2019 Maintains Outperform
Oct 2019 Maintains Market Perform
Oct 2019 Maintains Neutral

View More Analyst Ratings for SFIX
View the Latest Analyst Ratings

See more from Benzinga

© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.