The Analyst
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="SunTrust analyst Youssef Squali maintains a Buy rating with a $44 price target.” data-reactid=”20″>SunTrust analyst Youssef Squali maintains a Buy rating with a $44 price target.
The Thesis
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="SunTrust expects fourth-quarter results to come in relatively in-line with expectations, Squali said in a Monday note. (See his track record here.) ” data-reactid=”22″>SunTrust expects fourth-quarter results to come in relatively in-line with expectations, Squali said in a Monday note. (See his track record here.)
“If the company comes within shouting distance of Street expectations and management guides to relatively in-line FY20 results, we believe the stock will show much volatility near-term give its record short position (40% of float), and its material underperformance year-to-date,” the analyst said.
Much has been made of the year-over-year weakness in credit card data and traffic trends in the fourth quarter, despite a low historical correlation, he said.
Marketing efficiency and traction in the U.K. and newer products should drive the stock, Squali said.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Amazon.com, Inc. (NASDAQ: AMZN)’s new prime offering, Personal Shopper, resembles Stitch Fix’s offering, but will not have much impact on the company in its current form, the analyst said. ” data-reactid=”26″>Amazon.com, Inc. (NASDAQ: AMZN)’s new prime offering, Personal Shopper, resembles Stitch Fix’s offering, but will not have much impact on the company in its current form, the analyst said.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="View more earnings on SFIX” data-reactid=”27″>View more earnings on SFIX
“We believe there is still too much friction in the Personal Shopper experience (Prime members only, only within mobile app, monthly fee) to have much impact on Stitch Fix, and importantly we have yet to see Amazon market the offering more aggressively. Commentary on this offering and its impact to-date will be of focus on the call, in our view.”
Price Action
Stitch Fix shares were up 4.96% at $19.25 at the close Monday.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Related Links:” data-reactid=”31″>Related Links:
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Why Stitch Fix Uses Artificial Intelligence To Understand Consumer Habits” data-reactid=”32″>Why Stitch Fix Uses Artificial Intelligence To Understand Consumer Habits
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Future Of Retail? Innovative Alternatives To Traditional Shopping” data-reactid=”33″>The Future Of Retail? Innovative Alternatives To Traditional Shopping
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Photo courtesy of Stitch Fix. ” data-reactid=”34″>Photo courtesy of Stitch Fix.
Latest Ratings for SFIX
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Sep 2019 | Maintains | Buy | ||
| Jul 2019 | Upgrades | Hold | Buy | |
| Jul 2019 | Upgrades | Neutral | Buy |
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="View More Analyst Ratings for SFIX
View the Latest Analyst Ratings” data-reactid=”38″>View More Analyst Ratings for SFIX
View the Latest Analyst Ratings
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