Stitch Fix price target lowered to $3.50 from $4 at Canaccord

Canaccord lowered the firm’s price target on Stitch Fix to $3.50 from $4 and keeps a Hold rating on the shares. The company reported fiscal Q2 results that were broadly in line with expectations and reflective of ongoing turnaround efforts, with sales declining in the high teens year-over-year amid continued challenges with gross additions and reactivations in the quarter, the analyst tells investors in a research note. The firm says that while Stitch Fix’s ongoing focus on marketing efficiency and optimizing the customer experience is encouraging, a Hold rating is appropriate for now until a path to customer and top-line growth becomes more apparent.