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JPMorgan lowered its price target on Abercrombie & Fitch (NYSE:ANF) stock to $141.00 from $147.00 on Monday, while maintaining an Overweight rating on the shares.
The price target adjustment came after JPMorgan hosted meetings with Abercrombie & Fitch executives, including CEO Fran Horowitz, COO Scott Lipesky, CFO Robert Ball (NYSE:BALL), and VP of Investor Relations Mo Gupta at the firm’s US All Stars Conference in Toronto.
JPMorgan noted that Abercrombie & Fitch is beginning "the next chapter of diversified agnostic revenue growth" with a focus on driving lifetime value of customers ranging from infants to 40-year-olds across the brand portfolio.
The retailer aims to achieve this growth strategy with "healthy incremental contribution margins across all segments," according to information shared during the investor meetings.
Despite the lower price target, JPMorgan’s maintained Overweight rating suggests the firm remains positive on Abercrombie & Fitch’s overall business outlook and potential for share appreciation.
In other recent news, Abercrombie & Fitch reported strong financial results for the first quarter of 2025, with earnings per share (EPS) of $1.59, surpassing the consensus expectation of $1.33. The company’s revenue reached a record $1.1 billion, marking an 8% increase year-over-year, although it slightly missed the forecasted $1.08 billion. The Hollister brand was a significant contributor, achieving a 22% rise in net sales. Despite a 10% drop in Abercrombie’s comparable sales, the company anticipates a rebound in the second half of the year. Citi analyst Paul Lejeuz raised the price target for Abercrombie & Fitch to $105, maintaining a Buy rating, citing strong sales and a favorable fiscal year 2025 outlook. Conversely, CFRA analyst Zachary Warring reduced the price target to $152 but kept a Strong Buy rating, noting the company’s undervaluation and potential for substantial shareholder returns. Raymond (NSE:RYMD) James also reiterated an Outperform rating with a $90 target, highlighting the company’s better-than-expected earnings and strategic cost management. Despite ongoing gross margin pressure, analysts remain optimistic about Abercrombie & Fitch’s future performance, backed by strong brand positioning and strategic initiatives.
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