Abercrombie & Fitch: Jefferies raises TP

(CercleFinance.com) - Jefferies reiterates its 'buy' recommendation on Abercrombie & Fitch shares, with a target price significantly raised from $85 to $120, the day after the clothing house raised its targets for its Q4 and full year.


The broker says that holiday sales were strong, driven by solid gains in the women's business at both Hollister and A&F, while sales in the men's business were also up at A&F.

"We believe the company has plenty of runway left for top-line expansion, especially as we wait for Hollister's men's business to turn", Jefferies adds, which is also optimistic about an update to the Always Forward plan.



Following the company's pre-announced results at ICR, ANF updated its 4Q
top-line and margin expectations. The sales results were driven by robust sales gains in its women's business and both Hollister and A&F. Meanwhile, men's also grew at A&F. Looking ahead, we believe the company has even more room to grow, and as a result are reit. our rating while increasing our PT to $120.


We believe the company has plenty of runway left for top-line expansion, especially as we wait for Hollister's men's business to turn, and are optimistic that an updated Always Forward Plan could provide an increased outlook on mgmt's LT expectations


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