Abercrombie & Fitch price target raised to $68 from $53 at Morgan Stanley

Morgan Stanley analyst Alex Straton raised the firm’s price target on Abercrombie & Fitch to $68 from $53 and keeps an Equal Weight rating on the shares. The company’s Q3 EPS beat was driven by both top and bottom-line strength and was “even better than buyside hopes,” the analyst tells investors. While guidance feels “achievable (if not beat-able),” the firm sees an equal probability of continued momentum or reversion risk and blames a higher Q4 bar alongside crowded positioning for the “mixed stock reaction” to the quarterly report.