Jefferies cuts Abercrombie & Fitch price target, says ‘would be buying here’

Jefferies lowered the firm’s price target on Abercrombie & Fitch to $170 from $220 and keeps a Buy rating on the shares. While negative February trends at the flagship Abercrombie brand, combined with carryover inventory and markdowns are “causing concern,” the firm thinks this dynamic is “transient” and “would be buying shares here” given its belief that A&F can still generate close to 15% EBIT margins in 2025 while buying back $400M in shares, or just below 10% of the company’s current $4.1B market cap.