BTIG initiated coverage of Abercrombie & Fitch (NYSE: ANF) with a Buy rating and a $120 price target, citing confidence in the retailer’s growth prospects despite consumer headwinds.
The firm noted that after two years of double-digit growth led by the A&F brand, investors were now questioning whether the company could reignite top-line momentum or enter a prolonged normalization phase.
Analysts expressed confidence that easing average unit retail (AUR) headwinds would help A&F return to growth, while brand health and store traffic remained strong. At Hollister, multi-year growth opportunities were expected as the brand adopted A&F’s strategy.
International operations, now right-sized, were also seen as a growth driver not fully reflected in estimates. With valuation trading well below historical averages and peers, BTIG said the market had priced in a sharp earnings decline, leaving a favorable risk-reward profile.
