Shares of Abercrombie & Fitch (ANF) climbed 5.3% after a top Wall Street analyst initiated coverage with a bullish outlook. Notably, four-star-rated analyst Janine Stichter from BTIG initiated a Buy rating on ANF stock with a price target of $120, predicting an upside of 34%. The bullish call highlights confidence in the retailer’s growth prospects, sparking renewed investor interest in the stock.
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Abercrombie & Fitch Co. is a global specialty retailer recognized for its premium casual wear and lifestyle apparel.
Top Analyst Explains Her Bullish Call on ANF
Stichter initiated coverage of ANF with a Buy rating, citing that after two years of strong growth, Abercrombie & Fitch is now at a pivotal point. She also highlighted that growth in the company’s Hollister brand is steadily improving, and better inventory management is helping the retailer avoid large markdowns.
Meanwhile, she noted that while the company faces challenges from selective consumer spending and tough comparisons, she remains confident in ANF’s ability to return to growth. The analyst highlighted that store traffic and brand strength are solid. Notably, the Buy rating follows the company’s stronger-than-expected Q2 results last month, which included record quarterly sales and marked its 11th consecutive quarter of growth.
Looking ahead, Stichter and her team expect multi-year tailwinds for the company. For example, the retailer’s international presence is viewed as an untapped growth opportunity. Additionally, ANF’s current valuation remains well below both its historical levels and those of its peers. Notably, ANF’s P/E ratio is around 8, compared to the sector median of over 16.
Is ANF Stock a Good Buy?
Overall, Wall Street analysts have a Moderate Buy consensus rating on ANF stock based on six Buys and four Holds assigned in the last three months. The average Abercrombie & Fitch share price target of $111.78 implies a 24.32% upside potential.
Year-to-date, ANF stock has declined by 40%.
