Abercombie: Jefferies cuts target price

(CercleFinance.com) - Jefferies maintains its "buy" rating on Abercombie & Fitch shares, although has reduced its target price for them to 34 dollars (from 45 dollars) after the clothing chain reported better-than-expected Q1 results.


"However, margin weakness is the central focus, with mgmt. forecasting F'23 EBIT% to be in the range of 5-6% (vs. 7-8% prior)," the broker said.

While it believes Abercombie remains "well positioned to drive growth ahead" and that the share's valuation is attractive, headwinds relating to freight, inflation, and FX weighing on future sales and margins have led it to reduce its estimates.



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