Stitch Fix stock was hit hard on Thursday following a downgrade.
The downgrade to Stitch Fix (NASDAQ:SFIX) stock comes from Piper Jaffray analyst Erinn Murphy. A recent update from Murphy knocks SFIX stock down from its previous rating of “Neutral” to a new rating of “Overweight.”
The Piper Jaffray analyst also provides a new price target for Stitch Fix stock in her recent note. This new price target is actually an increase to $43 per share. The previous price target from the analyst was $29 per share. However, SFIX stock closed at $47.11 per share on Wednesday.
Murphy gives a few reasons for her decision to downgrade Stick Fix stock. What may be most noteworthy among them is the risk that Amazon (NASDAQ:AMZN) poses to the company. AMZN has a new Wardrobe service that is similar to Stick Fix’s business model and is currently advertising it during prime time slots of NFL games, reports MarketWatch.
Stitch Fix will release its earnings report for its fiscal fourth quarter and full year of 2018 after the markets close on Oct. 1, 2018. It will then be holding a conference call at 5:00 p.m. Eastern Time to discuss the results and outlook for the next year. Wall Street is expecting the clothing box subscription service to report earnings per share of 4 cents on revenue of $318.61 million for its fiscal fourth quarter of the year.
SFIX stock was down 13% as of noon Thursday, but is up 71% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.
