Stitch Fix, Inc. (SFIX) PT Raised to $32 at KeyBanc as Direct Gains Share from Dept Stores

KeyBanc analyst Edward Yruma raised the price target on Stitch Fix, Inc. (NASDAQ: SFIX) to $32.00 (from $28.00) on the belief that accelerated downsizing in department stores and specialty retail provides an opportunity to capture customers that prefer an experience. Additionally, he expects Direct Buy to drive incremental sales as well as customers while the core Fix business remains strong.

The analyst reiterated an Overweight rating, stating "We think Direct Buy will serve as a significant growth driver and will help SFIX take market share. SFIX captured share from a highly pressured apparel market. Net revenue grew +2.6% y/y (+10.6% on an adjusted basis). Net active clients grew to 3.5M and revenue per active client to $486. The expansion of Direct Buy is increasing AOV
and contributing to margin expansion".

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