Stitch Fix, Inc. (SFIX) PT Raised to $60 at Needham & Company; 'Underlying Client Growth Remains Strong'
Needham & Company analyst Rick Patel raised the price target on Stitch Fix, Inc. (NASDAQ: SFIX) to $60.00 (from $55.00) while maintaining a Buy rating.
The analyst commented, "SFIX reported lower than expected F2Q21 (CY 4Q20) revenue, due to external and internal factors. With headwinds expected to persist in F2H21 (albeit to a lesser degree) and pressure from the push-back of a key initiative (Direct Buy for new clients), FY21 guide was lowered. Despite the challenges, we see reasons to be optimistic: women’s First Fix growth was the highest in five years, Fix Preview was a success in the U.K. (higher conversion and 10% increase in AOV) and will be rolled out to the U.S., revenue per active client will see easier comparisons in F2H, and Direct Buy penetration is growing and benefiting client lifetime value. Net, we acknowledge headwinds, but see more pros than cons and maintain our Buy. We raise our PT to $60 from $55 on higher peer group multiples since our last report."