Analysts Trim A&F Price Target, Remain Bullish as Stock Down 45% YTD (NYSE: ANF)

Down 45% year-to-date, Abercrombie & Fitch's stock (NYSE: ANF) has given holders little to smile about in 2025. Adding to the bearish sentiment, analysts have come in with a swathe of reduced price targets on the stock.

Jefferies has revised their price target down to $170 from the prior mark of $220, albeit citing the belief in the company's potential to navigate through the current retail environment and emerge successfully. The firm have held a Buy rating in place.

Of the four other firms to reduce their ANF price target's, each of them hold an Outperform/Buy rating on the stock, indicating longer term belief in the company's ability to turn things around. Telsey ($125 from $190), UBS ($150 from $210), Citi ($135 from $160), and Raymond James ($110 from $124) all moved lower as FY EPS guidance came in light in recent earnings.

Jefferies echoes a sentiment of resilience, betting that Abercrombie & Fitch will be able to generate close to a 15% EBIT margin by 2025 and anticipates the company potentially repurchasing $400 million in shares, which would represent just below 10% of its current roughly $4.1 billion market capitalisation. The establishment's forward-looking stance underpins their sustained Buy rating on the Abercrombie & Fitch shares.

Abercrombie & Fitch, headquartered in New Albany, Ohio, is a multinational retailer within the consumer cyclical sector, focusing on an array of apparel, personal care products, and accessories catering to men, women, and children under its various brands. The company, founded in 1892, has carved out a niche in the apparel retail industry, selling through its stores and e-commerce platforms across global markets.

Abercrombie & Fitch's adjusted price target cut, despite the present challenges, come with a rating that reflects an embedded confidence in the company’s growth trajectory.