"Tom Nikic's Buy initiation for Abercrombie & Fitch is based on two stabilizing trends: improved comparable sales and an attractive valuation with a forward P/E of 8.08x."
"Hollister's sustained momentum, with 15% full-year net sales growth in fiscal 2025, supports long-term earnings expansion and provides durable revenue growth."
"Aggressive share repurchases, totaling 5.4 million shares in fiscal 2025, are expected to lift per-share earnings over time, enhancing shareholder value."
Abercrombie & Fitch shares have decreased by 26% in 2026, recovering slightly recently. Analysts have a consensus target of $120.78, while Needham's Tom Nikic initiated a Buy rating with a $108 target. Key factors for this optimism include improved comparable sales and an undemanding valuation with a forward P/E of 8.08x. Hollister's strong performance and aggressive share repurchases are also contributing to earnings growth. The company plans to open approximately 30 new stores and invest in digital initiatives.
Read at 24/7 Wall St.
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