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Investing.com - UBS maintained its buy rating and $130.00 price target on Abercrombie & Fitch (NYSE:ANF) stock on Tuesday.
The investment bank highlighted ANF’s strengthened position in US Specialty Retail over the past five years, suggesting the company’s initiatives should drive sales outperformance compared to apparel industry peers.
UBS noted that while the market appears skeptical about ANF’s ability to drive an inflection in the Abercrombie business and sustain double-digit percentage operating margins, a recent meeting with management reinforced the firm’s conviction of a second-half 2025 sequential recovery.
The financial services company forecasts a 12% four-year earnings per share compound annual growth rate after fiscal year 2025, which it believes is underappreciated at the current 7.2x FY2 price-to-earnings ratio.
UBS expects sequential improvement in ANF’s fundamentals and earnings per share beats over the next twelve months to drive the stock toward its $130 price target.
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