Analyst Alexandra Straton from Morgan Stanley maintained a Hold rating on Abercrombie Fitch and increased the price target to $95.00 from $93.00.
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Alexandra Straton’s rating is based on a combination of factors that suggest Abercrombie & Fitch’s financial performance is more resilient than initially anticipated. The company has demonstrated a stronger growth and margin profile, which could position it as a significant early-cycle beneficiary. Despite these positive indicators, the stock continues to reflect a more severe fundamental decline than what seems likely, suggesting potential for upward movement.
However, challenges remain, as the stock faces a bearish sentiment across the retail sector and a difficult holiday season ahead. These factors contribute to the ongoing bear reversion thesis, which could hinder the stock’s performance. Consequently, while there is potential for upside, these uncertainties justify maintaining a Hold rating on the stock.
Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ANF in relation to earlier this year.