Research analysts at Wall Street Zen have upgraded Abercrombie & Fitch (NYSE:ANF) from a “hold” rating to a “buy” rating in a note issued on November 26, 2023. This change reflects growing confidence in the apparel retailer, which has seen positive momentum in its stock performance. Several other firms have also reassessed their positions on Abercrombie & Fitch, indicating a broader trend of optimism surrounding the company.
Jefferies Financial Group increased its price target for Abercrombie & Fitch from $105.00 to $115.00, maintaining a “buy” rating. Similarly, Morgan Stanley revised its target price from $78.00 to $95.00, assigning an “equal weight” rating. Zacks Research upgraded the company from a “strong sell” to a “hold” rating, while JPMorgan Chase & Co. raised its target price from $92.00 to $109.00, providing a “neutral” rating. Additionally, Raymond James Financial set a price objective of $105.00 with an “outperform” rating.
Among the analysts following the stock, six have rated it as a “buy,” while another six have issued a “hold” rating. According to MarketBeat.com, Abercrombie & Fitch currently holds an average rating of “Moderate Buy” with an average target price of $110.10.
Earnings Performance and Financial Outlook
Abercrombie & Fitch recently announced its quarterly earnings, reporting earnings per share (EPS) of $2.36 for the quarter, surpassing analysts’ expectations of $2.14 by $0.22. The company generated revenue of $1.29 billion, which exceeded the anticipated $1.28 billion. This performance highlights a return on equity of 38.01% and a net margin of 10.07%. Year-over-year, revenue increased by 6.8%, although it is worth noting that the previous year’s EPS was $2.50.
Looking ahead, analysts predict that Abercrombie & Fitch will post an EPS of 10.62 for the current fiscal year, indicating continued growth prospects for the company.
Institutional Investment Trends
Recent changes among institutional investors and hedge funds reveal a growing interest in Abercrombie & Fitch. NewEdge Advisors LLC significantly increased its holdings in the company by 181.6% during the second quarter, now owning 352 shares valued at approximately $29,000 after acquiring an additional 227 shares. Similarly, Blue Trust Inc. entered a new position in Abercrombie & Fitch during the third quarter, investing $38,000.
Other notable movements include Ameritas Advisory Services LLC, which also acquired a new stake worth $38,000, and Hantz Financial Services Inc., which boosted its holdings by 108.2% in the third quarter, now owning 481 shares valued at $41,000. Additionally, Bessemer Group Inc. increased its position by 268.0%, now holding 666 shares worth $56,000.
Abercrombie & Fitch operates in the retail sector, specializing in apparel, personal care products, and accessories across various geographical segments, including the Americas, EMEA, and APAC.
This upgrade from Wall Street Zen and the positive financial performance signal a potentially bright future for Abercrombie & Fitch, as both analysts and investors are increasingly optimistic about the company’s prospects.
