Stitch Fix initiated with an Underperform at Mizuho

Mizuho analyst David Bellinger initiated coverage of Stitch Fix with an Underperform rating and $2 price target. The analyst launched coverage of 15 companies in the consumer hardlines and consumer internet verticals with an optimistic view for the balance of 2024. The firm expects a “more subdued, yet stable” spending backdrop to become more apparent in the coming months and takes a positive view toward eight names. Its top picks include Lowe’s (LOW) within core consumer hardlines and large caps, Wayfair (W) within consumer internet coverage, and Mister Car Wash (MCW) within small caps. For Stich Fix, the firm says the company’s “deteriorating” customer base puts the longer-term viability of its model into question.