Abercrombie & Fitch (ANF) has strengthened its position in US specialty retail over the past five years and despite a stock pullback due to margin headwinds, its brands are expected to deliver "solid growth" beyond fiscal 2024, UBS Securities said in a Thursday note.
The analysts said they expect Abercrombie's earnings per share to grow at a 10% compound annual growth rate through fiscal 2029.
The market is concerned about the retailer's ability to sustain mid-teens operating margins as it deals with high inventories, clearance activity at the Abercrombie brand, and external factors like weather conditions, according to the note. The investment firm said it expects these pressures to ease in H2 and lead to improved margins.
UBS lowered its fiscal 2025 to 2027 EPS estimates by 6% due to a reduced margin outlook resulting from slower sales growth and cost pressures.
The brokerage maintained a buy rating on the stock while reducing its price target to $150 from $210.
Price: 85.20, Change: -2.03, Percent Change: -2.33
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。