Abercrombie & Fitch (ANF) PT Raised to $64 at UBS

May 27, 2021 6:38 AM EDT
Get Alerts ANF Hot Sheet
Price: $38.28 +2.00%

Rating Summary:
    13 Buy, 23 Hold, 6 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 22 | Down: 13 | New: 29
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UBS analyst Jay Sole raised the price target on Abercrombie & Fitch (NYSE: ANF) to $64.00 (from $50.00) while maintaining a Buy rating.

The analyst commented, "We continue to view ANF as an attractive operating re-leverage stock. ANF's 1Q21 earnings report showcased the company's ability to drive margin improvement. The company's 1Q21 operating margin rose to 7.7%, 1160 bps better than consensus and 1410 bps better than the 1Q EBIT margin it delivered in its last three Q1s before the pandemic. ANF's ability to drive further EBIT margin recovery remains underappreciated, in our view. We model ANF's EBIT margin reaching 8.9% by FY23E vs. 2.3% in FY19. This leads us to forecast 345% EPS growth this year vs. 2019 and an 8% 4-yr. EPS CAGR thereafter. Our FY23 EPS estimate is 114% ahead of consensus. We think this outlook justifies a 16x P/E. We see a better than 2:1 upside/downside skew."



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