How Analysts View Abercrombie & Fitch after Fiscal Q4 Results
As of March 9, 2018, most of the analysts that covered Abercrombie & Fitch (ANF) maintained a “hold” rating. Of the 16 analysts covering Abercrombie & Fitch stock, 50.0% recommended a “hold,” 19.0% recommended a “buy,” and 31.0% recommended a “sell.” Abercrombie & Fitch reported fiscal 4Q17 results on March 7, 2018. Both its adjusted EPS (earnings per share) and sales beat the analysts’ estimates.
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Following the company’s results, several analysts raised the price target. BMO upped the target price to $23.00 from $22.00, and Telsey Advisory Group has revised its price target to $26.00 from $24.00. Also, RBC raised the target price to $27.00 from $24.00. Morgan Stanley also increased the price to $13.00 from the $11.00 projected earlier. Deutsche Bank increased the price target to $17.00 from $14.00 earlier. Jefferies raised the price target to $24.00 from $20 earlier.
Currently, the analysts’ 12-month average target price for the company is $21.92, which reflects a 1.7% downside to its stock price on March 9, 2018.
Where do peers stand?
Of the 14 analysts covering American Eagle Outfitters (AEO), 50.0% gave it a “hold” rating. For Gap (GPS), ~80.0% of the 25 analysts covering the stock recommended a “hold” rating. Urban Outfitters (URBN) received a “hold” rating from 52.0% of the analysts covering its stock.
Currently, analysts’ target price for American Eagle Outfitters is $20.12, reflecting a ~3.0% upside to the stock price as of March 9, 2018. Gap’s mean target price is $34.38, which indicates a ~4.0% upside to its stock price as of March 9, 2018. Urban Outfitters’ target price is $38.14, implying a 6.3% upside to its stock price as of March 9, 2018.
On March 9, 2018, Abercrombie & Fitch was trading at a 12-month forward PE (price-to-earnings) ratio of 28.5x. The company is trading at a higher valuation multiple in comparison with its peers. American Eagle Outfitters, Urban Outfitters, and Gap were trading at 12-month forward PE ratios of 13.4x, 16.2x, and 12.6x, respectively, on March 9, 2018.