Market Overview

Why Needham Is Turning Bullish On Stitch Fix

Why Needham Is Turning Bullish On Stitch Fix

Stitch Fix Inc (NASDAQ: SFIX) is gaining strength by diversifying its model and following an aggressive client acquisition strategy, while benefiting from favorable secular trends, according to Needham.

The Stitch Fix Analyst: Rick Patel upgraded Stitch Fix from Hold to Buy, while establishing a price target of $36.

The Stitch Fix Thesis: The Direct Buy option diversifies the company, positing it better in the broader market for apparel, footwear, and accessories, which represents a total addressable market of $400 billion, Patel said in the  note.

He mentioned four key reasons for the bullish rating:

  1. “Direct Buy expanding SFIX’s TAM, increasing loyalty, driving share gains from department stores, and generating higher revenue per client";
  2. Improved customer acquisition through aggressive marketing, increased personalization via the Trending For You approach, and progress in the UK;
  3. An improving assortment as the company “leverages data and strong vendor relationships to chase trends”; and
  4. Shift towards e-commerce becoming a more permanent trend.

SFIX Price Action: Shares of Stitch Fix traded higher by 1.3% to $28.63 at the time of publication Thursday.

Latest Ratings for SFIX

Nov 2020Morgan StanleyInitiates Coverage OnUnderweight
Sep 2020KeyBancMaintainsOverweight
Sep 2020NeedhamMaintainsBuy

View More Analyst Ratings for SFIX
View the Latest Analyst Ratings


Related Articles (SFIX)

View Comments and Join the Discussion!

Posted-In: Needham Rick PatelAnalyst Color Upgrades Price Target Analyst Ratings

Latest Ratings

CAMTStifelInitiates Coverage On19.0
ELMDNorthland Capital MarketsInitiates Coverage On15.0
DKNGUBSInitiates Coverage On52.0
DIODTruist SecuritiesInitiates Coverage On84.0
TGTArgus ResearchUpgrades205.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at