Abercrombie & Fitch initiated with a Buy at Goldman Sachs

Goldman Sachs initiated coverage of Abercrombie & Fitch with a Buy rating and $120 price target The firm rolled out coverage of the apparel retail sector with a preference for store growth and pricing power. Apparel prices have lagged inflation, providing an opportunity for a “catch-up” to offset tariff pressures for retailers with a value perception, the analyst tells investors in a research note. Goldman says that in an environment where the middle-to-high income consumer remains resilient, it prefers newer concepts with larger store growth opportunities.