On Tuesday, Jefferies issued a company note on Abercrombie & Fitch Co. ANF after recent analysis showed improving company financials, more efficient business operations and appropriate use of cash flows that could drive business value and increase the company's bottom line. Currently, analysts rate Abercrombie as a Buy and raised their price target from $40 to $50.
Randal Konik, an analyst at Jefferies, wrote, “Improving industry trends combined with an upward sales trajectory, lower cost structure, trough margins, & reduced share count imply that ANF’s nascent EPS recovery is just beginning. We are raising our FY’18 EPS estimate to $2, see EPS of $3 not too far thereafter, and believe 4 percent op margins can also return towards 10 percent.”
Abercrombie & Fitch recently released fiscal fourth-quarter earnings that beat expectations, with many analysts attributing the success to the retailer’s Hollister brand, whose sales increased by 4 percent in the quarter. Going forward, Abercrombie may continue to leverage the popularity of the teenage, California-inspired clothing line in order to drive revenue growth and improve the company's image.
Shares of Abercrombie & Fitch last traded at $31.06, down 2.02 percent.
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