Abercrombie & Fitch price target raised to $105 from $99 at Raymond James

Raymond James analyst Rick Patel raised the firm’s price target on Abercrombie & Fitch to $105 from $99 and keeps an Outperform rating on the shares. The company’s Q2 beat on EPS, revenue, gross margin, and EBIT margins, the analyst says, adding that while it was cautious on the A&F brand, revenue was under more pressure than anticipated at -5% on elevated promotions to clear excess inventory. While disappointing, the firm is cautiously optimistic on the second half of the year, as inventory is leaner, there are pockets of strength, traffic is up, and H2 compares are easier.