Stitch Fix price target raised by 25c at Morgan Stanley, here’s why

Morgan Stanley analyst Lauren Schenk raised the firm’s price target on Stitch Fix to $4 from $3.75 and keeps an Equal Weight rating on the shares. Fiscal Q1 revenue was in-line with the firm’s expectations and at the top end of management guidance, notes the analyst, who sees focusing on core Fix as the right long-term strategy with “some positive early signs.” However, with no signs of a near-term inflection, Stitch Fix “remains a show me story in the medium-term,” the analyst added.