Abercrombie & Fitch (NYSE: ANF) received an upgrade from Wall Street Zen, moving from a “hold” rating to a “buy” rating, as stated in a note to investors on November 25, 2023. This adjustment reflects growing confidence in the apparel retailer’s performance and market position. Other financial institutions have also expressed optimism about Abercrombie & Fitch, indicating a positive outlook for the company’s stock.
In a report released on November 26, Jefferies Financial Group raised its price target for Abercrombie & Fitch from $105.00 to $115.00, reaffirming a “buy” rating. Morgan Stanley adjusted its target price from $78.00 to $95.00 while maintaining an “equal weight” rating. Zacks Research upgraded the stock from a “strong sell” to a “hold” rating, reflecting improved expectations.
JPMorgan Chase & Co. also increased its price target for Abercrombie & Fitch, moving it from $92.00 to $109.00 while assigning a “neutral” rating. Additionally, Raymond James Financial set a price objective at $105.00 and rated the company as “outperform.” Currently, six analysts have rated Abercrombie & Fitch as a “buy,” while another six have assigned a “hold” rating, leading to an average rating of “Moderate Buy” with a target price of $110.10, according to MarketBeat.com.
Financial Performance Exceeds Expectations
Abercrombie & Fitch’s recent quarterly earnings report, released on November 26, 2023, showcased strong financial performance. The company announced earnings per share of $2.36, surpassing analysts’ expectations of $2.14 by $0.22. Revenue for the quarter reached $1.29 billion, slightly above the anticipated $1.28 billion.
The company’s return on equity stood at 38.01%, with a net margin of 10.07%. Year-over-year, revenue increased by 6.8% compared to the same quarter last year, although earnings per share dropped from $2.50 during the same period in the previous year. Analysts project that Abercrombie & Fitch will achieve an earnings per share of 10.62 for the current fiscal year.
Institutional Investors Adjust Holdings
Recent activity among institutional investors also reflects a growing interest in Abercrombie & Fitch. NewEdge Advisors LLC increased its holdings by 181.6% during the second quarter, now owning 352 shares valued at approximately $29,000. Similarly, Blue Trust Inc. acquired a new position during the third quarter worth $38,000.
Ameritas Advisory Services LLC also entered the market with a new stake worth $38,000. Hantz Financial Services Inc. raised its holdings by 108.2%, bringing its total to 481 shares valued at about $41,000. Furthermore, Bessemer Group Inc. expanded its position by 268.0%, now holding 666 shares valued at approximately $56,000.
Abercrombie & Fitch operates in the retail sector, specializing in apparel, personal care products, and accessories. The company has a significant presence across various regions, including the Americas, Europe, the Middle East, and Africa (EMEA), and the Asia-Pacific (APAC) region.
As the company continues to navigate the competitive landscape of retail, these upgrades and positive earnings reports may indicate a promising trajectory for Abercrombie & Fitch in the coming months. Investors will be keen to monitor further developments as the retail sector evolves.
