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Stitch Fix’s Results Show ‘Green Shoots’ Emerging: Analysts Take A Look While Stock Jumps Higher

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Stitch Fix Inc (NASDAQ:SFIX) shares were climbing on Wednesday after the company reported better-than-expected fiscal third-quarter results.

The results came amid an exciting earnings season. Here are some key analyst takeaways.

Truist Securities On Stitch Fix

Analyst Youssef Squali reiterated a Hold rating while raising the price target from $3.50 to $4.00.

Stitch Fix reported revenue of $323 million, representing a 16% year-on-year decline but coming in higher than “muted” expectations of $306 million, Squali said in a note. Although the company also reported its adjusted EBITDA ahead of consensus estimates, this excludes $4.1 million of restructuring costs, he added.

The quarter reflects “gradual improvements in the business as green shoots emerged from mgmt’s ongoing turnaround strategy of strengthening its operational foundation while improving the client experience,” the analyst wrote “That said, much work remains as mgmt expects active clients to decline further …

Full story available on Benzinga.com

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