Abercrombie: Jefferies raises price target
(CercleFinance.com) - Jefferies has reiterated its 'buy' recommendation on Abercrombie & Fitch shares, raising its target price for them from $215 to $220, expecting EPS to rise by around 7% p.
a. between 2025 and 2027, to $11.86, above the consensus of around 4% p.a., to $11.17.
The broker explains that he sees several favourable sales factors contributing to an increase in productivity, which it believes implies a potential extension of the apparel chain's gross margin.
Our productivity analysis shows a gap of around 50% between Abercrombie and its peers, so we believe that increasing sales and optimizing the company's costs could help reduce this gap, it adds.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
a. between 2025 and 2027, to $11.86, above the consensus of around 4% p.a., to $11.17.
The broker explains that he sees several favourable sales factors contributing to an increase in productivity, which it believes implies a potential extension of the apparel chain's gross margin.
Our productivity analysis shows a gap of around 50% between Abercrombie and its peers, so we believe that increasing sales and optimizing the company's costs could help reduce this gap, it adds.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.