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Monday, June 17, 2024

Abercrombie & Fitch 2Q print lends additional credibility to turnaround

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Morgan Stanley upgraded Abercrombie & Fitch (NYSE:) to Equal-Weight from Underweight, elevating the value goal for the inventory to $51 from $18 per share.

Analysts instructed buyers that the corporate’s 2Q print lends additional credibility to the Abercrombie & Fitch turnaround.

“2Q beat/FY increase magnitude & Hollister inflection shocked to the upside, sending shares +23% for the reason that print,” defined analysts. “ANF’s across-the-board 2Q EPS beat outpaced already-elevated expectations into the print, with $1.10 EPS coming in 6x+ the Road’s 16c. Notably, A&F topline momentum continued for the seventh consecutive quarter, whereas Hollister comps turned constructive for the primary time since 2Q19 ex-Covid.”

This week, ANF reported of $1.10 per share, $0.94 higher than the analyst estimate of $0.16. In the meantime, income for the quarter got here in at $935 million versus the consensus estimate of $839.06 million.

Analysts concluded that given the corporate’s 3Q FY2023 steerage screens conservative, its turnaround proving “more and more reliable,” and varied situation analyses placing steerage inside attain, the agency sees “potential incremental upside.”

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ANF inventory surged +23% following the earnings beat on Wednesday. After a 0.8% decline Thursday, it’s up over 1% forward of Friday’s session.

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