Please ensure Javascript is enabled for purposes of website accessibility

Abercrombie & Fitch Gets Two Thumbs Up From Analysts, Its Stock Drops Anyway

By Rhian Hunt - May 19, 2020 at 6:35PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Both firms see a significant upside thanks to brand strength and other factors.

Shares of lifestyle retailer Abercrombie & Fitch (ANF -3.92%) traded lower today despite positive outlooks provided by research notes from a pair of major investment firms. Both Wedbush Securities and investment bank B. Riley FBR expressed optimism today about the apparel seller, which, like much of the sector, saw sales and share value plunge in March and April as COVID-19 spread through major U.S. cities.

From B. Riley, analyst Susan Anderson gave Abercrombie & Fitch a $13 per share price target, expecting it to "outperform" under current conditions, with sector sales recovering and company cost-cutting and online efficiency winning over investors. She kept Abercrombie rated as Buy, along with several other apparel sector stocks.

A stock market analyst looking at a computer screen.

Image source: Getty Images.

Her research note pointed to Abercrombie's "growing strength in the A&F brand and Hollister which continues to resonate with consumers" to support the rating. She also noted that international sales could provide the company with a boost, considering "some of the pressure in Europe and U.S. should be mitigating by Asia opening."

Meanwhile, Wedbush kept an even higher price target in place, forecasting $16 per share. It also continues its Outperform rating on the retailer, unchanged from its previous rating. In the firm's research note, analyst Jen Redding declared that Abercrombie's "management has eyes on the prize, and look to have navigated through COVID-19 exceptionally well capitalizing on momentum pre-COVID, best in class social marketing, and a powerful omni-channel better-than-most."

Despite the endorsements, Abercrombie & Fitch shares were down -1.8% at market close, priced at $11.65 and still well below the $17 to $18 range they traded in prior to COVID-19.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Abercrombie & Fitch Co. Stock Quote
Abercrombie & Fitch Co.
ANF
$16.90 (-3.92%) $0.69

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
323%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.