By Christiana Sciaudone
Investing.com — We’re coming out and we need something new to wear.
Stitch Fix (NASDAQ:) jumped 10% after Evercore initiated coverage with a buy-equivalent rating saying the online fashion retailer is a Covid recovery play.
“Closets need to be restocked,” said analyst Mark Mahaney, according to StreetInsider.
After having very little reason to wear anything but loungewear over the past year, with , it’s time for people to refresh our looks as we hit the outside world again.
Stitch Fix had rallied to a record in late January, and has tumbled by 50% since then, a dip that investors should take advantage of, Mahaney said. Shares fell after the company missed analyst estimates for results and guidance with its quarterly earnings report from March 9. At the time, Stitch Fix said shipping delays over the holiday season were the reason for weaker revenue.
The analyst sees revenue acceleration for this and next year, adding the stock to its Best SMID Long Term “Core” Ideas.
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