UBS Bullish on Abercrombie (ANF) Brand Strength After ICR Conference

Abercrombie & Fitch Co. (NYSE:ANF) ranks among the stocks with the lowest forward PE ratios. On January 14, UBS reiterated its Buy rating for Abercrombie & Fitch Co. (NYSE:ANF), with a $160 price target. The adjustment came after a discussion with the company’s management at the ICR Conference, which supported UBS’s favorable stance on the company’s brand fundamentals.

Analyst Mauricio Serna predicts that Abercrombie & Fitch’s four-year EPS compound annual growth rate will rise to 14% beyond fiscal year 2029, indicating that the specialty retailer will continue to thrive in the long run. The analyst stated that market worries appear to be centered on Hollister’s potential to sustain strong sales growth into fiscal year 2026, given the difficult comps.

In addition, ANF’s fourth-quarter results surpassed expectations, with overall revenues increasing 5%. Both brands recorded a rise in sales, with Hollister experiencing solid comparable growth and Abercrombie returning to healthy revenue growth for the first time in fiscal 2025.

Abercrombie & Fitch Co. (NYSE:ANF) is a global omnichannel retailer that offers an assortment of apparel, personal care products, and accessories for women, men, and kids.

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Disclosure: None. This article is originally published at Insider Monkey.