Citi analyst Paul Lejuez maintained a Hold rating on Abercrombie Fitch today and set a price target of $79.00.
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Paul Lejuez has given his Hold rating due to a combination of factors impacting Abercrombie Fitch’s financial outlook. The company’s third-quarter earnings per share are anticipated to fall slightly below market expectations, primarily due to weaker sales in the Abercrombie & Fitch brand. Although there is some improvement compared to the previous quarter, the sales figures are still expected to remain negative, with management likely to indicate further, albeit negative, improvement in the fourth quarter.
Additionally, while there are pressures on average unit retail prices, particularly in the second half of fiscal 2025, these are accounted for in the current guidance. The company is also facing margin pressures from tariffs, but these could be partially offset by lower freight costs. Despite the stock’s significant decline since the last quarter, which suggests that much of the negativity is already reflected in the price, the overall risk/reward scenario appears balanced, justifying a Hold rating.
In another report released on October 27, J.P. Morgan also assigned a Hold rating to the stock with a $92.00 price target.
Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ANF in relation to earlier this year.