Morgan Stanley analyst Alex Straton assumed coverage of Abercrombie & Fitch with an Underweight rating and an unchanged price target of $16. In conjunction with its presentation at the ICR meeting A&F management raised Q4 revenue guidance on the back of better-than-expected holiday results and raised their Q4 EBIT margin guidance, Straton noted. Despite this better-than-expected Q4 result, his broader view remains unchanged as he continues to struggle to bridge the gap between this year’s forecasted operating margin of 2.6% and the company’s "ambitious" long-term target of 8% in 2025 and 10% longer-term given that A&F "has not enjoyed EBIT margins at this level since 2012," Straton said.
Published first on TheFly
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- Abercrombie & Fitch price target raised to $28 from $24 at UBS
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- Abercrombie & Fitch raises Q4 net sales view to up in the range of 1%-2%
- Abercrombie & Fitch Co. Increases Fourth Quarter Sales and Operating Margin Outlook Based on Better-Than-Expected Holiday Sales
- Abercrombie & Fitch price target raised to $27 from $18 at Argus
