UBS reiterated its Buy rating on Abercrombie & Fitch Co. (NYSE: ANF) on Tuesday, maintaining a $153 price target previously raised from $136. The firm cited a five-year earnings per share compound annual growth rate forecast of 12% and projected a second-quarter EPS beat of 7 cents driven by stronger sales and margins.
Barclays upgraded the retailer to Equalweight from Underweight, assigning a $114 price target, while Morgan Stanley resumed coverage with an Equalweight rating and a $87 target. Barclays highlighted an improved fiscal 2026 tariff outlook and tighter promotional controls as key drivers for its upgrade.
Abercrombie & Fitch’s market capitalization stands at $4.93 billion, with a current P/E ratio of 10.7 and a forward two-year multiple of 9.5 times. The company is also reviewing strategic options for its China unit, which could involve local partnerships or a partial sale, potentially valuing the business at several hundred million dollars.
The retailer opened a new store in New York City’s SoHo district featuring a revamped design concept, including expanded apparel, denim and accessories sections. Morgan Stanley expressed caution about near-term growth but retained optimism for long-term profitability.
UBS noted that its valuation accounts for market concerns over the company’s ability to sustain comparable sales amid difficult multiyear comparisons, though it anticipates limited upside following the second-quarter report.
