Why Stitch Fix Stock Popped This Morning

Shares of online clothier Stitch Fix (NASDAQ: SFIX) jumped 9.1% in 11 a.m. EDT trading Tuesday -- and you can probably thank the friendly analysts at Evercore ISI for that.

Yesterday after close of trading, you see, Evercore announced that it is initiating coverage of Stitch Fix with an "outperform" rating and a $78 price target -- quite a lot more than the $52 and change that Stitch Fix stock currently costs.

During the pandemic, a lot of investors probably considered Stitch Fix as a kind of "pandemic play," inasmuch as it facilitated shopping for clothes remotely, rather than in physical stores. And yet, as StreetInsider.com reports, Evercore thinks consumers' "closets need to be restocked" after a year of living in lockdown, and argues that now Stitch Fix is actually "a COVID recovery play" (emphasis added).

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Source Fool.com