Abercrombie: Jefferies confirms Buy rating on stock

(CercleFinance.com) - Jefferies confirms its Buy recommendation on the stock, maintaining its target price at $170.


The analyst believes that short-term instability creates opportunities, and that the outlook for 2025 remains solid.

February trends for the Abercrombie brand (negative), combined with inventories (de-stocking), raise concerns, but we believe this dynamic is transitory, the broker says.

We believe Abercrombie can still generate EBIT margins close to 15% in 2025 ($11.35 EPS). The shares are trading at a P/E of 7x (vs. a 5-year average of 14x; i.e. the multiple has been halved), Jefferies adds.


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