UBS trimmed its 12-month price target on Stitch Fix from $6 to $4, reflecting revised expectations for revenue growth and margin recovery. The reduction marks a one-third cut in the valuation benchmark, signaling tempered confidence in the company’s ability to accelerate its turnaround.

Despite the price target cut, UBS maintained a Neutral rating on the shares, indicating neither a strong buy nor sell recommendation. The rating suggests that the stock may trade in line with peers unless new catalysts emerge.

The analyst highlighted a balanced upside/downside skew into the upcoming Q2 results, pointing to potential beat or miss relative to consensus. Key near-term factors include order volume trends, customer acquisition costs and ongoing expense management, which will drive share performance.