Stitch Fix price target raised to $4.50 from $3.50 at Canaccord

Canaccord analyst Maria Ripps raised the firm’s price target on Stitch Fix to $4.50 from $3.50 and keeps a Hold rating on the shares after meeting with management. While it is still early days in the Stitch Fix turnaround story, there are signs that the health of the platform is starting to improve, the analyst tells investors in a research note. The firm says that with active customer growth remaining challenged, management sees a path to return to revenue growth even without substantial net new customer expansion in the near term. Despite keeping a Hold rating, the firm continue to sees the potential for meaningful multiple expansion if Stitch Fix’s upcoming product and platform initiatives start to yield even moderately positive results returning customers and revenue to growth.