Market Overview

Argus Turns Bullish On Abercrombie, Sees Upside To $25

Argus Turns Bullish On Abercrombie, Sees Upside To $25

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

Jul 2019UpgradesUnderperformNeutral
May 2019MaintainsUnderperform
May 2019MaintainsUnderperform

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

WUBABOCOM InternationalDowngrades
DLTROTR GlobalUpgrades
ARCCCompass PointDowngrades
GTYHCitiInitiates Coverage On7.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
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.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

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

A Survey Of Celgene's M&A Strategy