Market Overview

Argus Turns Bullish On Abercrombie, Sees Upside To $25

Share:
Argus Turns Bullish On Abercrombie, Sees Upside To $25
Related ANF
5 Stocks Primed To Fall Lower In The Coming Days
28 Stocks Moving In Monday's Pre-Market Session

Abercrombie & Fitch Co. (NYSE: ANF) bottomed last year at $8.81, but shares have since rebounded to nearly $20.

Despite the more than doubling in value, at least one Wall Street analyst sees further upside ahead on the basis of the retailer's turnaround plan. 

The Analyst

Argus Research Company's John Eade upgraded Abercrombie & Fitch from Hold to Buy with a $25 price target. 

The Thesis

After five years of weakness in Abercrombie's business, a new management team is righting the ship and a turnaround plan is starting to see results, Eade said in a Friday note. (See the analyst's track record here.) 

Fran Horowitz was appointed as CEO in February 2017, and the company brought in a new chief marketing officer to launch a campaign that emphasizes the brand's historic association with outdoor adventure and exploration. The brand's perception among young consumers has "improved significantly," which should contribute to longer-term market share gains, the analyst said. 

In the meantime, Abercrombie managed to report two consecutive quarters of EPS surprises, which helped the stock rebound to near $20 per share, Eade said. But even at current levels, the stock looks attractive as it continues to trade at a discount to its peers and below historical average multiples, he said. 

Price Action

Shares of Abercrombie & Fitch were trading higher by 3.32 percent at $19.58 after the open Friday. 

Related Links:

Analyst Echoes Predictions Amazon Will Buy Retailer: 'Downtrodden Big Box, Department Store Player'

Report: The Retailers Most Dependent On Holiday Sales

Photo by Urizzato/Wikimedia. 

Latest Ratings for ANF

DateFirmActionFromTo
Oct 2018WedbushMaintainsNeutralNeutral
Sep 2018Morgan StanleyMaintainsUnderweightUnderweight
Aug 2018William BlairDowngradesOutperformMarket Perform

View More Analyst Ratings for ANF
View the Latest Analyst Ratings

Posted-In: Argus John Fade retailers Teen RetailersAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (ANF)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
ETTXWedbushInitiates Coverage On19.0
WINGWedbushDowngrades0.0
BMYCitigroupDowngrades57.0
INTCNomuraUpgrades0.0
HRZNKeefe Bruyette & WoodsDowngrades10.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Benzinga's Top Upgrades, Downgrades For January 19, 2018

A Survey Of Celgene's M&A Strategy