Abercrombie & Fitch price target raised to $93 from $85 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Abercrombie & Fitch to $93 from $85 and keeps an Equal Weight rating on the shares. While noting that a Q2 beat and fiscal year guidance raise were “largely driven by one-time items,” the firm leaves the report “more constructive,” the analyst tells investors. However, the firm sees a valuation re-rating as unlikely given the two-brand “balancing act” and operating margin reversion fears, the analyst added.