Analysts Cut Stitch Fix Price Target Post Q1 Results

Several analysts lowered the price target on Stitch Fix Inc SFIX following the release of the company's Q1 FY22 results. The company's Q1 results topped Street view but provided a downbeat Q2 outlook.

• KeyBanc analyst Edward Yruma downgraded o Sector Weight from Overweight without a price target. The analyst sees limited visibility following the fiscal Q1 results.
• Yruma said freestyle remains the key total addressable market "unlock" for the business, but it will take time and effort to ramp.
• He viewed Stitch Fix's 15,000 quarter-over-quarter net additions as disappointing and said they will likely to act as a headwind.
• Evercore ISI analyst Mark Mahaney downgraded Stitch Fix to In Line from Outperform with a price target of $24, down from $68, suggesting 4% downside, following Q1 results.
• Piper Sandler analyst Erinn Murphy lowered the firm's price target to $22 from $46 and kept a Neutral rating on the shares.
• Barclays analyst Ross Sandler lowered the firm's price target to $22 from $37 and kept an Equal Weight rating on the shares, implying an 11.9% downside, following the results.
• Sandler said the Stitch Fix story "is coming up a tad short as it reaches the major milestone of introducing traditional e-commerce (Freestyle) and moving away from its stylist box-club roots."
• Baird analyst Mark Altschwager lowered the price target on Stitch Fix to $25 from $52 and kept a Neutral rating on the shares.
• The analyst said while Q1 results mostly met expectations, a material downward revision to growth expectations reinforces that the company's transformation to "Stitch Fix 2.0" will be bumpy.
• Canaccord analyst Maria Ripps lowered the firm's price target on Stitch Fix to $38 from $50 and kept a Buy rating on the shares.
• Telsey Advisory Group analyst Dana Telsey maintained Stitch Fix with an Outperform and lowered the price target from $55 to $40, suggesting a 60% upside.
• Price Action: SFIX shares are trading lower by 24.3% at $18.91 in premarket on the last check Wednesday.