Stitch Fix Stock Springs to Life After Analyst Note

The stock sports a six-month lead of nearly 70%

Deputy Editor
Sep 9, 2020 at 9:58 AM
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The shares of Stitch Fix Inc (NASDAQ:SFIX) have been quite volatile of late, taking a steep nosedive from their early June peak of $30.44 before once again gaining momentum off the $22 mark. The stock made a mad dash for this fifteen-month high yesterday, surging to $29.76 before eventually pulling back to notch much more modest wins.

It looks like SFIX is taking another run at these highs today, however. The stock is up 4.5% at $27.90, after Deutsche Bank initiated coverage with a "buy" rating, and a target price of $34. The analyst called Stitch Fix one of the largest beneficiaries of COVID-19-related lockdowns and store closures. 

Considering its six-month lead of nearly 70% -- bolstered by support at the 80-day moving average -- another round of analysts could follow Deutsche Bank's lead. SFIX's 12-month consensus price target of $27.46 is just a slight premium to last night's close. Plus, six of the seven in coverage still called SFIX a "hold," coming into today, while the remaining seven called the equity a "strong buy."

Option bulls are likely cheering this recent upside. In fact, 6.32 calls have been picked up for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) in the past 10 weeks. This ratio stands higher than 96% of readings from the past year, suggesting a healthier-than-usual appetite for long calls of late

 

 

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