Stitch Fix price target raised to $4 from $3.50 at Bernstein

Bernstein analyst Aneesha Sherman raised the firm’s price target on Stitch Fix (SFIX) to $4 from $3.50 and keeps a Market Perform rating on the shares. While the company is in its 10th consecutive quarter of double-digit revenue declines, Q1 revenue beat Street expectations by 4%, and continued cost discipline reflected in adjusted EBITDA of 13.5M, near double Street expectations, the firm says. FY25 guide was raised, reflecting both the Q1 beat and greater expectations for the remainder of the year. The business has stabilized but is a year from targeting growth again, which puts a cap on margins and ultimately valuation, adds Bernstein.