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Investing.com - UBS has reiterated its Buy rating on Abercrombie & Fitch (NYSE:ANF) stock with a price target of $130.00, according to a research note released Thursday.
The investment bank cited ANF’s strengthened position in US Specialty Retail over the past five years as a key factor in its continued positive outlook for the company. This view is supported by the company’s impressive 62.7% gross profit margin and solid 9.3% revenue growth over the last twelve months.
UBS pointed to ANF’s second-quarter sales and operating margin beats as reinforcement of its view that the company’s business strategy should drive solid long-term growth, despite facing incremental tariff headwinds.
The firm expects gross margin pressures to gradually abate, which, combined with mid-single-digit sales growth, should drive a 13% four-year earnings per share compound annual growth rate after fiscal year 2025.
UBS believes this solid growth trajectory will serve as a catalyst for the stock to move toward its $130 price target, as the company’s brands maintain healthy underlying fundamentals.
In other recent news, Abercrombie & Fitch reported its earnings for the second quarter of 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $2.32, which was higher than the forecasted $2.27. Additionally, Abercrombie & Fitch’s revenue exceeded projections, reaching $1.2 billion compared to the anticipated $1.19 billion. Despite these positive financial results, the company’s stock experienced a decline in pre-market trading. This development follows an overall positive performance in terms of earnings and revenue, highlighting Abercrombie & Fitch’s ability to exceed market expectations. Investors may find these results noteworthy as they reflect the company’s financial health and operational performance. Such outcomes are crucial for stakeholders evaluating the company’s position in the market.
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