UBS reiterates Abercrombie & Fitch stock rating on growth outlook

UBS has reaffirmed its Buy rating on Abercrombie & Fitch Co. (NYSE:ANF) with a $153.00 price target, citing the company's strengthened position in specialty retail and the potential for solid growth beyond fiscal year 2026. The firm forecasts a 12% five-year earnings per share compound annual growth rate, despite the stock's current P/E of 10.7, which is lower than its market cap of $4.93 billion.

UBS anticipates a 7-cent earnings per share beat in the second quarter, driven by better-than-expected sales and gross margin percentages, and expects the company to raise its earnings per share guidance for fiscal year 2026 toward the high end of the range.

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