Stitch Fix (NASDAQ:SFIX) news for Wednesday concerning new coverage of the company saw SFIX stock taking off.
The new coverage comes from analysts at Deutsche Bank. The firm initiated its coverage of the stock with a buy rating and a price target of $34. For comparison, that price target is up 27.8% from the stock’s closing price on Tuesday.
Deutsche Bank’s coverage of SFIX stock is bullish compared to other firms weighing in on it. The current consensus price target is sitting at $27.46 per share and the average rating for the stock is hold.
With that in mind, potential investors might be wondering why Deutsche Bank has such a positive outlook for Stitch Fix. According to its note, the analysts see the potential for SFIX stock as it has grown during the novel coronavirus pandemic, reports Schaeffer’s Investment Research.
Stitch Fix getting a boost due to the pandemic makes since. The company offers an online styling service that suggests clothing to customers based on a variety of factors, such as price, size and budget. With many stores having to close down due to the coronavirus, it’s no surprise that customers turned to online shopping for their fashion needs.
Deutsche Bank analyst Kunal Madhukar said the following in a note obtained by Benzinga.
“In our view, this has materially expanded the addressable opportunity for the company and is coming at the right time when consumers are wanting new apparel ideas though e-commerce.”
SFIX stock was up 7.8% as of Wednesday afternoon
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.