Stitch Fix's Road To Profitability: Analysts Agree On Long-Term Turnaround, Short-Term Struggles
Portfolio Pulse from Nabaparna Bhattacharya
Stitch Fix, Inc. (NASDAQ:SFIX) missed Q4 earnings estimates with net revenue decreasing 22% YoY. Analysts from Truist Securities and Telsey Advisory Group have reiterated a Hold and Market Perform rating respectively, lowering the price target to $4. The company has been facing challenges with declining active users and revenues. However, analysts see potential for a turnaround in the long term, with profitability expected by FY25.
September 19, 2023 | 4:52 pm
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Stitch Fix's Q4 earnings miss and lowered price target may negatively impact its stock in the short term. However, analysts' long-term profitability outlook could provide some support.
The company's missed earnings and lowered price target are negative indicators that could drive the stock price down in the short term. However, the analysts' long-term profitability outlook suggests that the company has potential for recovery, which could mitigate some of the negative impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100