UPDATE: Argus Upgrades Abercrombie & Fitch (ANF) to Buy

Argus analyst Deborah Ciervo upgraded Abercrombie & Fitch (NYSE: ANF) from Hold to Buy with a price target of $47.00.

The analyst comments "Our rating on Abercrombie & Fitch Co. (NYSE: ANF) is now BUY, raised from HOLD. ANF is improving marketing, strengthening its digital and omnichannel capabilities, and transitioning to smaller stores that can help boost customer engagement. It also continues to invest in its supply chain. We are impressed with the company's focus on digital sales, which now account for a majority of revenue. On a technical basis, the shares are in a bullish pattern of higher highs and higher lows that dates to September 2020. On the fundamentals, the shares are trading at 11-times our FY23 EPS estimate, below the peer average of 18. The shares trade at a price/sales multiple of 0.8, above the midpoint of the five-year range of 0.2-1.1 but below the peer average. We think that valuations are attractive, particularly as the company shifts its focus toward digital operations. Our 12-month target price is $47, or 13-times our FY23 EPS estimate."

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 $40.16 yesterday.

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