Abercrombie & Fitch (NYSE:ANF) rose in early trading on Thursday after BTIG started off coverage on the mall stock with a Buy rating.
Analyst Janine Stichter noted that after two years of double-digit growth, the company is now at a crossroads as investors focus on if the top line revenue can re-inflect positively or if the Ohio-based company is poised for a prolonged period of normalization. “While we acknowledge headwinds from a selective consumer and tough comparisons, we have confidence in A&F’s ability to return to growth as AUR headwinds abate at A&F, a factor well within the company’s control, while traffic and brand health remain strong,” highlighted Stichter.
In terms of tariffs, ANF is offsetting by diversifying sourcing, securing additional concessions, and, to a lesser extent, strategically raising prices.
Looking ahead, Stichter and her team see multi-year tailwinds forming at Hollister as it leverages the A&F playbook. The retailer’s international footprint is also seen as providing optionality that is not yet fully factored into earnings estimates. Finally, valuation on ANF is seen as being significantly below historic levels and peers.
BTIG set a price target of $120 on Abercrombie & Fitch (NYSE:ANF). The 52-week high is $167.71.
Shares of Abercrombie & Fitch (ANF) were up 2.5% to $87.50 in premarket trading. Short interest on ANF stands at 10.1% of the total float.