Needham Starts Abercrombie & Fitch (ANF) at Buy
Needham analyst Tom Nikic initiates coverage on Abercrombie & Fitch (NYSE: ANF) with a Buy rating and a price target of $108.00.
The analyst comments "We're launching coverage of ANF with a Buy rating and a $108 price target. After a tough FY25, we think fundamentals are stabilizing, which makes the stock attractive in our view (shares trading at just 8x the high end of FY26 guidance). In terms of fundamentals, the Abercrombie brand's comp-sales trajectory has dramatically improved in recent quarters and could get back into positive territory soon. And while Hollister comps have normalized following 7 straight quarters of +DD increases, we don't think Hollister will fall to negative-comp territory like Abercrombie did. We're also intrigued that they're exploring strategic options for the money-losing Asia business, which we think could result in ~$0.50 of EPS improvement. So all in, we see a compelling risk/reward here given the current valuation (8x FY26 EPS, 4x EBITDA)."
For an analyst ratings summary and ratings history on Abercrombie & Fitch click here. For more ratings news on Abercrombie & Fitch click here.
Shares of Abercrombie & Fitch closed at $88.55 yesterday.