Goldman Sachs analyst Heath P. Terry on Friday upgraded Stitch Fix (SFIX) to buy from neutral, sending the stock higher.
The online personal stylist's repeat customers and its new-product developments, which enable shoppers to order additional colors, prints and sizes of previously purchased items, have turned the analyst bullish on the stock.
Stitch Fix's "data advantage" is helping it drive retention and incremental sales from the current user base, Terry said in a research note.
Goldman, which was part of the team that brought the company public in 2017, said it liked Stitch Fix's exclusive brand offerings and expected its expansion in the U.K. to boost growth.
Stitch Fix has gained more than 60% this year and was last trading up 1.4% at $28.50.
Among the analysts surveyed by Bloomberg, the stock has four buys, nine holds and no sell ratings.
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