In premarket trading on Tuesday, the stock traded at $50.42, up 40.72%; shares had climbed 40% year to date through Monday.
In the fiscal 2021 first quarter ended Oct. 31, San Francisco-based Stitch Fix registered net income of 9 cents a share and revenue of $490.4 million. The average analyst polled by Bloomberg had forecast a loss of 18 cents a share on sales of $481 million.
Specifically, Mark Mahaney of RBC Capital Markets lifted his price target to $64 from $50, keeping his outperform rating. He anticipates that the consumer shift to online shopping during the coronavirus pandemic will continue, helping Stitch Fix, according to Bloomberg.
Goldman Sachs analyst Heath Terry increased his price target for the stock to $58 from $34, maintaining his buy rating. He echoed Mahaney, writing that "we continue to believe the share shift to e-commerce will become more apparent, driving a catch-up in SFIX performance."
Deutsche Bank analyst Kunal Madhukar raised his Stitch Fix price target to $54 from $34, keeping a buy rating. He echoed the reasoning of Mahaney and Terry, also citing the closing of brick-and-mortar stores in retail land.
Morgan Stanley analyst Lauren Schenk said a “generally improving” trend for U.S. apparel sales is boosting Stitch Fix. Better-than-expected full-year revenue guidance also lifted the stock, she said. Schenk has an underweight rating on shares of Stitch Fix.