Stitch Fix, Inc. (SFIX) PT Raised to $4.50 at Canaccord Genuity

Canaccord Genuity analyst Maria Ripps raised the price target on Stitch Fix, Inc. (NASDAQ: SFIX) to $4.50 (from $3.50) while maintaining a Hold rating.

The analyst commented: "We hosted Matt Baer, Stitch Fix's CEO, David Aufderhaar, CFO, and Hayden Blair, Senior Director of IR, for a fireside chat and series of investor meetings. While it is still early days in the Stitch Fix turnaround story, there are signs that the health of the platform is starting to improve, following efforts over the last year to resharpen the core Fix experience, focus on key competencies of personalization and styling, and improve unit economics. With active customer growth remaining challenged, management sees a path to return to revenue growth even without substantial net new customer expansion in the near term, as it has identified a meaningful opportunity to increase wallet share with existing clients. SFIX shares have rallied over 40% on the heels of encouraging fiscal Q3 results, however the stock still trades at just 0.2x FY25 revenue, and cash comprises a little under half of the market cap. While we are maintaining our HOLD rating for now, given the undemanding valuation, we continue to see the potential for meaningful multiple expansion if upcoming product and platform initiatives start to yield even moderately positive results returning customers and revenue to growth. We are raising our price target to $4.50 (from $3.50), which is based on <1x FY25E revenue (unchanged) and is supported by DCF valuation."

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Jane Street Took $15 Billion Hit In July Tied To Situational Awareness - Reuters
• Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating